Never too Early to Teach Your Kids About Evils of Credit Cards

As parents, we teach our kids from an early age to look both ways before they cross the street, to avoid sexual predators, and to obey traffic laws.

But when it comes to credit cards and debt issues we basically adopt a hands off policy and send them on their way.  It’s no wonder the average college student gets their first credit card within weeks of arriving on campus.  They use their new cards for any number of truly urgent “educational” expenses – pizza, beer, and entertainment.

Instead of leaving them to their own devices you should be as proactive about teaching them about credit as you are anything that can hurt them.  Credit mistakes can take years to recover from, and bad habits established at university can establish a disturbing pattern of overspending and splurging that can follow them for the rest of their lives.

I think you should begin educating your kids before credit is an issue because if they have a clear idea of how credit card companies work and what the true cost of carrying plastic debt is, they might be more inclined to take a pass on the offers of easy credit in lieu of saving for the things they want.

There’s something else you can do: Lead by example.  Cut your own credit cards in half and live your life on a cash or savings basis for non-essential items.  You’ll have more money and you won’t have to squirm when your kids give you a funny look for having the attitude “Do as I say, not as I do.”

Make sense?

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