Teaching Teenagers About Credit Cards

It is almost impossible to survive in the modern world without credit. Because you need credit for so many various things. For example, without credit,rolex, you would find it very difficult to rent a car. When you go to rent a hotel room, the first thing they will ask for is a credit card. And without credit, forget about buying a home as most people couldn't afford to pay cash.

No one can deny that credit has been one of the most important factors responsible christian louboutin for the thriving in our economy. So much so that it has allowed thousands of people to live a lifestyle that they could only dream of without credit. The elephant in the room, when it comes to credit, is that Americans are so extended when it comes to credit that millions are dangerously close to losing it all.

A half century ago, it was hard to get credit. If someone saw a living room or dining room set in the department store that they wanted to have, they had a couple of ways of going about getting it. They could save their money from their paychecks and deposit in the bank until it accumulated to a large enough sum where they could pay cash for it. Or, they could purchase the living room set on 'lay-away'.

Lay-away is an anachronistic term which meant that the department store would 'reserve' the living room set, in their inventory. And, every week or month,mbt sko priser, you would pay them a portion of its cost. When you had paid the full cost, the furniture was yours and you could take it home.

The kids that have become teenagers today, however, have pretty much grown up with credit all around them. From the time they were babies, they have watched the adults around them, their older siblings, and other people purchasing all sorts of items using nothing more than a plastic card. As a result, there has been a monumental disconnect between associating the money earned from work with the credit card used to pay for that new video game or dvd.

In fact,ugg boots, by the time most students enter college they begin to receive applications for credit cards even though they have had very little or zero experience in the actually handling of credit. And when the students actually start to charge for items using their credit card, they are often astonished at the speed with which their finances quickly get out of whack.

If we want to preserve our children's futures, we have to teach them about credit. We have to teach them how to use it responsibly and how to prevent misuse of it from ruining their lives. And, the time to teach them is long before they get their first credit card. Because, once they become overburdened with debt, it is probably too late. And, these days, with jobs becoming scarcer by the moment, it becomes critically important for everyone to take control of their finances as quickly as they can.