There was an article a while back about debt being a main concern between parents and their children.
Seems like parents don’t like the kids getting in over their heads – because they never did it themselves.
It’s true. I don’t remember my parents being in a lot of debt when I was growing up, and my grandmother – never.
It would have been unheard of for her to take on debt of any sort,except maybe her house. I’m sure my parents and grandparents didn’t buy their first house in their twenties, – they worked and saved and bought one after they felt financially secure.
Today, young people go into debt to go to college, buy a home in their twenties, purchase new cars, and heck, just have a good time while they are young.
All things that our parents and grandparents waited years for, and saved for.
The average debt of twenty somethings today, averages $16,000 – up at least 10% from just a few years ago.
The stress of having debt in your twenties might cause you to take a job you don’t like – or drop out of school or college.
Debt is also the number one reason children move back home with their parents.
It doesn’t have to be this way.
Credit cards are offered to kids still in school – heck, my dog even got an application once.
If you’ve got children:
- Issue and approve a debit card instead of a credit card to encourage money management.
- Teach how to save and spend wisely.
- Model saving for large purchases.
- Encourage delayed – not instant – gratification, which is more satisfying anyway.
- Insist upon summer jobs to earn extra money toward a long term goal – like a (used) car or college.
- If you are a twenty something – or any age, practice these things yourself.
Why I’m against debt