bssage;Teens???????????????????
IMHO no way. Using credit to buy stuff is the opposite lessen you want your Daughter to learn. Remember this "The borrower is slave to the lender"
Well, God always knows what He is talking about. Yes, debt is bad, no question.
That said, I have had a credit card since my late teens, which I obtained on my own. 33 years now, same card. I have no debt and a 4% interest rate on that card, because during the market crash in '09, when the bank raised my rate along with everyone else's, I emailed the CEO and presented my case. I asked how many 33 year customers they could possibly have and why they should treat me well and restore my interest rate. He agreed and it was done the next day.
I've never been in debt over my head and have no debt now but mortgage debt (and will unload that soon). I haven't had a car payment since the 90's; we pay cash for cars a few years old in excellent condition.
All that said, not ALL teens are irresponsible with money and debt. Only those who have not been taught or who refused to listen.
Besides, an 18 year old is an adult and can do what he/she wants. All we can do is hope we have done our job. Most of us will find we really have done our job on a lot of issues, and not on a few.
Credit cards blurr the line between needs and wants. I would question the forum. How many of us have been burdened by debt? .
I think I had the advantage of being raised by Depression-era parents. Debt was just not an option when you are a mailman, making a few grand a year and raising a large family. Kids today are often raised by parents who have always felt entitled to everything they want, the moment they want it. During the last few years, I've watched family after family go into bankruptcy and lose their houses, all of whom had larger, fancier homes and drove nicer cars than we do.
One friend purchased a home in the same price range as our modest home - but she made 1/5 of our income and had FOUR kids, as a single Mom. She asked our advice; we told her she couldn't possibly do it. She did it anyway. She was in trouble in six months.
The lesson you want to teach is how to tell a need from a want, How to save for wants, How to budget.
I do understand your post. And its great seeing this post. Its one of my soapboxes. I just 4 months ago became dept free with the exception of my mortgage. My only bills are utilities, food, insurance and taxes. Whew. I paid off roughly 45k of debt. And I had never had a card until I bought my first house.. I am very proud of myself for slaying debt in my life.
Congratulations. Feels good, doesn't it. And you will be able to roll with things that come your way, unexpectedly. I had a recent emergency hospitalization for 6 days. Bill: $45,000 (!!!). Thankfully, we have good insurance but it was still $4000 out of pocket, due RIGHT NOW (or they send you to collection quickly these days, unlike the old days of our parents). Because we live modestly, no problem. We paid it right away.
We try to handle debt to increase our credit score so that we can get more debt.
I would like to say one thing about that. Yes, some do it to get more debt. Others, like me, run occasional short term debt (something I can pay off with cash, but let go a month or two) in order to maintain a very high credit score. That credit score is used today (illegally and wrongly, I believe, but that's another thread) for every purpose under the sun. If you are considered for a job, your credit score is checked and you could easily be dismissed as a contender for a low credit score. Your insurance amount is tied to your credit score (wrongly). We pay very low car insurance rates. This is why we maintain a high credit score instead of just get rid of the cards.
So you CAN do it the smart way and benefit yourself, but if temptation to spend is a problem for one (and we all have different temptations in our lives), then I agree that having no possiblity of borrowing is a good idea.
We pay debt with debt. We are fine with debt until something unexpected happens. Then our "planning" goes out the door. How often does something unexpected happen? At my house its like once or twice a month. Now when something unexpected happens I have an emergency fund. Like water off a ducks back
Right. Though it doesn't happen often here. But when it does, it's expensive! Both our old cars died a year ago and we had to buy two new (to us) cars in one month. You have to be ready for something like that.
