Education on Credit

A couple days ago I wrote a post on teaching kids about credit. I listed some points on credit that I would like to expand on. Here is the first point I had mentioned.

1.Educate the child on what credit actually is. Its best to let the child know that a credit card is not their money, and have them understand that credit needs to be paid back, sometimes over time.

-to expand on this, it might be a suggestion that explain to our children that credit is a goods or service provide,d prior to payment. It is a trust commitment from the credit company to the individual. The company extending credit is doing so, with great trust, that the debt will be paid back in full, after the credit had been granted. The lenders will give the opportunity to an individual to get something and pay It back later. I think its very important to educate our children that credit is to be managed and not abused. I think its wise to educate remind our children that stealing is wrong. When an individual gets granted credit from a company and does not pay that credit back, it is actually theft. This theft can create challenges for many people down the road including us(the economy). The more credit that does not get paid back, the higher the cost will be to get “a carĀ loan” in the future.

In the upcoming posts I will run through the points that were previously made.

Heres a loan calculator that can be used to show the “cost of borrowing”

Just My 2 Cents

-M

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