Comments on: Teach Your Child About Responsible Credit Use http://www.peakpersonalfinance.com/teach-your-child-about-responsible-credit-use/ Thu, 09 Feb 2012 02:17:24 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: PiendyWeicy http://www.peakpersonalfinance.com/teach-your-child-about-responsible-credit-use/comment-page-1/#comment-2458 PiendyWeicy Fri, 22 Oct 2010 01:55:16 +0000 http://www.peakpersonalfinance.com/?p=499#comment-2458 18 Sep 2010 Child with toy hand grenade street artBrooklyn Art AJA Video changes sales structure Ein Symbol des Westens Politically Incorrect 123people spaulweiser Since Moores selection in 2004, 10 more Trojans have had their names In 2006, Pierce had to find a way to replace the four departed seniors who His plan called for the Trojans to continue to make steady strides each season troytrojans staff x?staff3 File Format: PDFAdobe Acrobat Quick Viewby B Barbanis 1999 Cited by 2 Related articlesSend offprint requests to: H Varvoglis (varvogli@astro auth gr) the mon point S (ϵ1min, Î ) emanate the family 29A1 and 29Aa1 by changing Î astro auth gr~varvoglibarbanis1 pdf Sync DVDs/Movies/Videos to iPad PINOCCHIO, VAMPIRE SLAYER Returns THE FIRE WIRE 15 – 21 May Former NFL Player Junior Seau Drives Off Cliff Official Trailer for Inarritus Biutiful Arrives 18 Sep 2010 Child with toy hand grenade street artBrooklyn Art AJA Video changes sales structure Ein Symbol des Westens Politically Incorrect 123people spaulweiser
Since Moores selection in 2004, 10 more Trojans have had their names In 2006, Pierce had to find a way to replace the four departed seniors who His plan called for the Trojans to continue to make steady strides each season troytrojans staff x?staff3
File Format: PDFAdobe Acrobat Quick Viewby B Barbanis 1999 Cited by 2 Related articlesSend offprint requests to: H Varvoglis (varvogli@astro auth gr) the mon point S (ϵ1min, Π) emanate the family 29A1 and 29Aa1 by changing Πastro auth gr~varvoglibarbanis1 pdf

Sync DVDs/Movies/Videos to iPad
PINOCCHIO, VAMPIRE SLAYER Returns
THE FIRE WIRE
15 – 21 May
Former NFL Player Junior Seau Drives Off Cliff
Official Trailer for Inarritus Biutiful Arrives

]]> By: Jacob Marta http://www.peakpersonalfinance.com/teach-your-child-about-responsible-credit-use/comment-page-1/#comment-1694 Jacob Marta Sat, 10 Jul 2010 18:36:50 +0000 http://www.peakpersonalfinance.com/?p=499#comment-1694 I respect your point of view Miranda. And yes, I agree children learn from their parents and respected mentors, not just from what they were told to do, but because they watched and observed our conduct. The way we spend and save is largely a learned behavior. A parent's choice of words are also very important, ie; what and why is something an expense or an investment. You can make a case to use student loans, although most are a 10 year low interest rate investment, which is not a short term instrument financing a consumable product. Home loans - If you have saved then you should be able to make the 30% down payment, avoid PMI, and take out a 15 year instead of a 30 year loan. (not everyone should think they need to purchase a $600k home full of high tech gizmos with two 40k cars in the garage. Don't get me wrong I love those things too, but they came after I paid off my home! If the home purchase and loan is chosen according to your personal income then it is likely you have made an investment in an asset, and not an expense to feed your ego. We certainly discuss and point out example after example of how and why short term borrowing impacts an individual's finances over time with our kids. We tailor the details of those discussions to their ages. Ultimately by the time they are on their own they will have a solid understanding of what to do. I'm sure your(s) will to. My main point is that if your child has no debt, why teach them to use loans, or even suggest this is a natural or positive thing to do? Why not start off with the premise that first you learn, then work, then you save and invest in yourself and rarely if ever do you borrow. We certainly do not leave out what credit cards are in our teachings, but we put them into their proper context ; an unnecessary expense that keeps you from investing in yourself. Our country has become financially weak because we have moved from a rational investment strategy, to an absurdly overleveraged consumer borrowing psychology. Best - Jacob I respect your point of view Miranda. And yes, I agree children learn from their parents and respected mentors, not just from what they were told to do, but because they watched and observed our conduct. The way we spend and save is largely a learned behavior. A parent’s choice of words are also very important, ie; what and why is something an expense or an investment.

You can make a case to use student loans, although most are a 10 year low interest rate investment, which is not a short term instrument financing a consumable product.
Home loans – If you have saved then you should be able to make the 30% down payment, avoid PMI, and take out a 15 year instead of a 30 year loan. (not everyone should think they need to purchase a $600k home full of high tech gizmos with two 40k cars in the garage. Don’t get me wrong I love those things too, but they came after I paid off my home! If the home purchase and loan is chosen according to your personal income then it is likely you have made an investment in an asset, and not an expense to feed your ego.

We certainly discuss and point out example after example of how and why short term borrowing impacts an individual’s finances over time with our kids. We tailor the details of those discussions to their ages. Ultimately by the time they are on their own they will have a solid understanding of what to do. I’m sure your(s) will to.

My main point is that if your child has no debt, why teach them to use loans, or even suggest this is a natural or positive thing to do? Why not start off with the premise that first you learn, then work, then you save and invest in yourself and rarely if ever do you borrow. We certainly do not leave out what credit cards are in our teachings, but we put them into their proper context ; an unnecessary expense that keeps you from investing in yourself.

Our country has become financially weak because we have moved from a rational investment strategy, to an absurdly overleveraged consumer borrowing psychology.

Best – Jacob

]]> By: Miranda http://www.peakpersonalfinance.com/teach-your-child-about-responsible-credit-use/comment-page-1/#comment-764 Miranda Tue, 20 Oct 2009 16:42:44 +0000 http://www.peakpersonalfinance.com/?p=499#comment-764 I agree, Jacob, that it is important to teach kids about saving and investing. But it doesn't have to be mutually exclusive. My parents set us all up with funds when we were younger, and required us to invest. I've set my son up with a college fund, and I will encourage him to open an IRA when he turns 16 and gets a job. And we sometimes look at companies and talk about individual investments. Of course investing and saving is the path to financial independence. But that doesn't mean that credit cards won't be involved. And I'd rather my son learn about responsible card use from me, than from trial and error. In the end, kids need guidance, and they need to know what's out there. If all you do is say "credit cards are bad" and don't give them guidelines, many kids will be more than happy to experiment... I agree, Jacob, that it is important to teach kids about saving and investing. But it doesn’t have to be mutually exclusive. My parents set us all up with funds when we were younger, and required us to invest. I’ve set my son up with a college fund, and I will encourage him to open an IRA when he turns 16 and gets a job. And we sometimes look at companies and talk about individual investments. Of course investing and saving is the path to financial independence. But that doesn’t mean that credit cards won’t be involved. And I’d rather my son learn about responsible card use from me, than from trial and error. In the end, kids need guidance, and they need to know what’s out there. If all you do is say “credit cards are bad” and don’t give them guidelines, many kids will be more than happy to experiment…

]]> By: Hank http://www.peakpersonalfinance.com/teach-your-child-about-responsible-credit-use/comment-page-1/#comment-756 Hank Mon, 19 Oct 2009 00:29:58 +0000 http://www.peakpersonalfinance.com/?p=499#comment-756 I like everything you said except #3. I think that never getting into debt with credit cards to start with would be a much better option. I wish that was the lesson that my parents had taught me instead of the horrible example I saw through the abuse of credit cards. Never starting out with credit cards is a better option any day! I like everything you said except #3. I think that never getting into debt with credit cards to start with would be a much better option. I wish that was the lesson that my parents had taught me instead of the horrible example I saw through the abuse of credit cards. Never starting out with credit cards is a better option any day!

]]> By: Jacob Marta http://www.peakpersonalfinance.com/teach-your-child-about-responsible-credit-use/comment-page-1/#comment-740 Jacob Marta Thu, 15 Oct 2009 16:34:31 +0000 http://www.peakpersonalfinance.com/?p=499#comment-740 Miranda, I respectfully disagree with some of your advice. Yes, parents need to teach their children what these types of financial tools are, how they work, and who should use them. However, I strongly disagree that you should set your child up with the financial psychology of needing or wanting to use short term financing (credit cards, auto loans, student loans) to finance their life expenses. If you had no debt, no auto loan, no student loan, no credit card debt, and instead had 100k in your investment account at the age of 30 would you feel secure? Financially free? Is this not the situation you hope to put your children in? Children are a clean slate with no debt, what a wonderful opportunity to teach them to keep it that way. It is not just abuse that causes financial distress. The simple use of high interest short term loans means that consumers are paying 3x the price of every purchase they make. This means that instead of saving and investing in themselves, they are paying somebody else. This is poor financial advice. Regardless if you are an on time payer or not. Credit Scores. Ask yourself who set up credit scores? Bankers and Insurance companies. Why? To charge you higher interest rates on your loans. Whens the last time you though, wow the credit rating company really did me a favor and scored me fairly. NOT. They always find a way to ding you and charge you more. It is a well thought out algorithm to ensure the highest return on loan and insurance products. I suggest that parents at this early age show their children how to invest in themselves. The true path to wealth is to save and invest until you reach the point where your investments pay for your basic monthly expenses. The more you use credit the longer it will be until you reach financial independence, if ever. I humbly suggest that parents teach their kids to REJECT the use of credit cards. Teach them about how to live on a cash basis only, learn about basic investing and the huge advantage they have just for being young and investing early. Miranda, I respectfully disagree with some of your advice. Yes, parents need to teach their children what these types of financial tools are, how they work, and who should use them. However, I strongly disagree that you should set your child up with the financial psychology of needing or wanting to use short term financing (credit cards, auto loans, student loans) to finance their life expenses.

If you had no debt, no auto loan, no student loan, no credit card debt, and instead had 100k in your investment account at the age of 30 would you feel secure? Financially free? Is this not the situation you hope to put your children in? Children are a clean slate with no debt, what a wonderful opportunity to teach them to keep it that way.

It is not just abuse that causes financial distress. The simple use of high interest short term loans means that consumers are paying 3x the price of every purchase they make. This means that instead of saving and investing in themselves, they are paying somebody else. This is poor financial advice. Regardless if you are an on time payer or not.

Credit Scores. Ask yourself who set up credit scores? Bankers and Insurance companies. Why? To charge you higher interest rates on your loans. Whens the last time you though, wow the credit rating company really did me a favor and scored me fairly. NOT. They always find a way to ding you and charge you more. It is a well thought out algorithm to ensure the highest return on loan and insurance products.

I suggest that parents at this early age show their children how to invest in themselves. The true path to wealth is to save and invest until you reach the point where your investments pay for your basic monthly expenses. The more you use credit the longer it will be until you reach financial independence, if ever.

I humbly suggest that parents teach their kids to REJECT the use of credit cards. Teach them about how to live on a cash basis only, learn about basic investing and the huge advantage they have just for being young and investing early.

]]> By: Michael Wagner http://www.peakpersonalfinance.com/teach-your-child-about-responsible-credit-use/comment-page-1/#comment-734 Michael Wagner Tue, 13 Oct 2009 16:59:04 +0000 http://www.peakpersonalfinance.com/?p=499#comment-734 Great article! The one thing that this article addresses that is SO relevant is - parental advice/guidance. I know a lot of people comment on the lack of parents that actually know how, but parent-teen interaction is critical. It is all about education, education, education. I think starting early is the best method. I realize there is all this discussion about the CARD Act, but parental involvement and interaction can outweigh what the CARD Act is designed to do. I believe budgeting is very important, living within your means, understanding the basics of bank accounts, both savings and checking, and learning to save for retirement. I champion these and other personal finance tips in my recently published book, Your Money Day One: How to Start Right and End Rich. It is a personal finance book for young adults ages 15-23. It is available through amazon.com or as an MP3 download on audible.com or iTunes. Please feel free to visit my website, . Great article! The one thing that this article addresses that is SO relevant is – parental advice/guidance. I know a lot of people comment on the lack of parents that actually know how, but parent-teen interaction is critical. It is all about education, education, education. I think starting early is the best method. I realize there is all this discussion about the CARD Act, but parental involvement and interaction can outweigh what the CARD Act is designed to do. I believe budgeting is very important, living within your means, understanding the basics of bank accounts, both savings and checking, and learning to save for retirement. I champion these and other personal finance tips in my recently published book, Your Money Day One: How to Start Right and End Rich. It is a personal finance book for young adults ages 15-23. It is available through amazon.com or as an MP3 download on audible.com or iTunes. Please feel free to visit my website, .

]]> By: Miranda http://www.peakpersonalfinance.com/teach-your-child-about-responsible-credit-use/comment-page-1/#comment-732 Miranda Tue, 13 Oct 2009 12:49:57 +0000 http://www.peakpersonalfinance.com/?p=499#comment-732 While your advice is good for teaching children about responsible finance in general, this post is, as mentioned, about teaching children to use credit wisely. It's a nice thought to think that they will never, ever get credit cards or use credit, but the truth is that, at some point, they most likely will. And, truth to tell, responsible credit card use can be a great tool. I get a free ticket to see my husband's family in New York every year -- without having to pay one single cent in interest. Using my rewards card responsibly saves me around $486 a year. While your advice is good for teaching children about responsible finance in general, this post is, as mentioned, about teaching children to use credit wisely. It’s a nice thought to think that they will never, ever get credit cards or use credit, but the truth is that, at some point, they most likely will. And, truth to tell, responsible credit card use can be a great tool. I get a free ticket to see my husband’s family in New York every year — without having to pay one single cent in interest. Using my rewards card responsibly saves me around $486 a year.

]]> By: Matt Kelly http://www.peakpersonalfinance.com/teach-your-child-about-responsible-credit-use/comment-page-1/#comment-725 Matt Kelly Mon, 12 Oct 2009 20:55:20 +0000 http://www.peakpersonalfinance.com/?p=499#comment-725 Hi, say your post come across Twitter and decided to weight in. I like what you wrote in your personal finance habits post - I'd start with paying off the smallest debt first. In this post how about teaching children to be responsible with their personal finances instead of worrying about credit. My 3 would be: 1) Begin with a budget - that includes managing the money you give them for clothing and other basics. 2) Have your teenager start saving for something that is really important to them that will take them about 6 months to save for so they learn about delayed gratification. 3) Never encourage your child to get a credit card. Thanks for posting, Matt Hi, say your post come across Twitter and decided to weight in. I like what you wrote in your personal finance habits post – I’d start with paying off the smallest debt first.

In this post how about teaching children to be responsible with their personal finances instead of worrying about credit. My 3 would be:
1) Begin with a budget – that includes managing the money you give them for clothing and other basics.
2) Have your teenager start saving for something that is really important to them that will take them about 6 months to save for so they learn about delayed gratification.
3) Never encourage your child to get a credit card.

Thanks for posting,

Matt

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