Credit Cards Can Be A Good Trainer

I am from the baby Boomers generation and my understanding of the present generation and experience from my own children is that somewhere along the way we or the education system failed them miserably. They don't seem to realize that things have to be paid for. Learning to use credit properly is a make or break situation for future happiness in my book.

Children want the same as their parents have, but are expecting it all within a short time. They need to realize that their parents were brought up in an era where you had to live within your means.

Luxuries were on the bottom of the list of priorities not at the top. Somewhere along the line, perhaps it’s TV, media, fast food or whatever, the children of today want it all and they want it NOW. It's all too much of a temptation, and they're unable to resist, as they haven't had to.

They get credit cards and don't take the option on of paying them off each month early. Hence they incur full credit card fees of up to 15 or 20%.

That little bit extra we strive to give our children because we were deprived of it, has bounced back to haunt us!

In our day a deposit was required on a house and it was 10%, which when factored into the wage/price was a quite a challenge for many (and a stumbling block). To get a deposit it was necessary to forego some or many of the luxuries. These days children have trouble with the word 'luxury'.

Where did we go wrong with them? How many of the have any common sense? Financial knowledge just isn't out there for them, or at least it’s the wrong kind.

I mean credit cards are great. But somewhere along the line you have to do the maths. Maths that indicates whether you can afford something, and if not, then have it as a treat and realize there's a price to pay.

It’s not a case of have it all now and pay later. Because other things come along which also need to be paid for. And .. everything takes work to pay it off. One hours work will only take care of so much won't it? So you have to keep working and keep paying, not keep working and keep spending.

The today’s generation - they want it all and they want it now and they even want it yesterday. Poor kids. Do they know about booms and busts, variable credit loans, ‘honeymoon periods’ of credit? They need to.

Credit cards can be useful if introduced early to children. If they’re managed well it would be a good introduction to the skills and judgment of juggling a mortgage. A limit of a few thousand dollars should be imposed so as they can learn how, first hand, the banking system works. Learn how to say ‘no’ to themselves occasionally, as their elders had to.
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