subscribesubscriber servicescontact usabout ussite map
Tue, Nov 10 2009 

Resources

print this story   Print this story
email this story   E-mail this story
  Post to del.icio.us

Photos


Mat Anderson is the staff writer and research specialist at The Bridge in Joplin. For more information visit futureparadigm.org.
Submitted Photo / Mat Anderson

Published August 13, 2008 06:34 pm - Right now, teens across America are packing up the contents of their bedrooms and preparing to move into dorms as college freshman. As they box up their clothes and possessions, there is one thing that most young people don’t think about bringing: debt.

Mat Anderson: Help teens learn to live debt-free



Right now, teens across America are packing up the contents of their bedrooms and preparing to move into dorms as college freshman. As they box up their clothes and possessions, there is one thing that most young people don’t think about bringing: debt.

According to school loan provider Nellie Mae, the average college freshman brings $1,585 of credit card debt to college. As they progress through their college years, many teens live beyond their means and rack up even more debt.

Mounting financial difficulties lead an estimated 7 to 10 percent of college students to drop out, so they can work and pay off their bills. Many students who remain in college graduate with student loans and crippling debt. Their credit score is in disarray and their ability to enter grad school, get the job of their choice or find housing is jeopardized.

In light of this reality, it is important for parents to determine how teens get into financial trouble, and work to prevent it.

One of the greatest causes of teens’ financial irresponsibility comes from their natural tendency to procrastinate. Unfortunately, the consequences of putting off credit-card payments can far outweigh the consequences of not studying for a test.

Other causes of teen money troubles are cultural. In the past, Americans struggled to keep up with the Joneses. Teens today try to keep up with the Hiltons.

In this celebrity-saturated world, young people are no longer wanting what they see kids at school wearing — they want what celebrities are wearing, driving, eating, etc.

In order to live beyond their means, teens make use of credit cards that are offered to them at every turn. For many teens, the phrase, “Would you like to save 10 percent today by applying for a credit card,” is the beginning of big financial problems.

These financial lessons are often learned the hard way. Many teens don’t learn about credit scores until theirs is ruined, and they don’t see how a T-shirt here, a latte there, and a few late-night pizza orders add up until they receive their statement in the mail.

It’s never too late to teach your teen to be financially responsible. Whether you live a virtually debt-free lifestyle or you’ve made some financial mistakes in the past, the experience of parents is valuable to teens.

Take the time before your teen gets a credit card, or even a checking account, to explain how things such as credit cards, loans, credit scores and interest rates work.

Also, help your teen define wants and needs. Show him that to get something that he really wants, it is important to sacrifice, save and work hard. Apart from being a wise way to approach purchases, this practice will also build character.

Another vital part of building financial literacy is to teach teens how to budget. Help teens plan for where each dollar of their money will be spent and encourage them to save a portion of their earnings for emergencies.

Finally, set a good example. By following your own advice and demonstrating financial restraint and responsible spending, your teen will be able to look to you as a guide through the confusing world of fine print, interest rates and credit scores.

This will not only ensure that your teen gets off on the right foot financially, but will also help ensure her future.



print this story    email this story    comment on this story   

Click to discuss this story with other readers on our forums.


Add a comment on this story







autoconx
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Click here!!

: Special Offer For New Subscribers : 32 buy 1 get 1 free offers

Click Here!



Featured Jobs

ORTHOPAEDIC
Specialist of the Four States is currently accepting applications for the following postiions: Physical Therapist, Occcu...>MORE

See all ads

Featured Transportation

VOLKSWAGEN, 1998 BEETLE,
black, 5 speed, looks, runs and drives great, only 84,000 miles, $3400. 417-621-0850....>MORE

See all ads

Featured Homes

NO CREDIT NEEDED QUALIFY
for 0 down Own completely remodeled 2/2 16x80 single section manufacturered home, 2 acres, trees, corner lot, large deck...>MORE

NO CREDIT
needed qualify for 0 down Own completely remodeled 3/2 16x80 single section manufacturered home, 2 acres, new front deck...>MORE

1995 16x72 2 BR, 2 BA,
fully furnished, all appliances, 1 owner, beautiful, smoke free, must move. $17,500. (417)423-2385....>MORE

Deerfield Estates
in Carl Junction, prime building sites, reduced $10,000 each. 417-825-0052...>MORE

See all ads

Other Cool Stuff

TEA CUP
Chihuahua pup, female, shots, wormed. Information (417)843-2735...>MORE

10 YEAR OLD BUCKSKIN
mare, 14-hands, broke for anyone, $750; miniature Jack and bred Jenny, $400 pair. (417)434-3700....>MORE

CRAFTSMAN
radial 10” arm saw; skil saw 7 1/4”; Singer Featherweight machine; clocks/pocket watches; 7.62-54 rifle, accessories; Ca...>MORE

1993 KUBOTA 1560
lawn tractor, 42” cut with bagger, $800. (417)364-8231....>MORE

BASS BOAT, 2005
Lowe aluminum, 17’, 2005 90 hp Mercury, 2006 trailer, excellent shape, low hours. $7,500. (417)776-8846 evenings or 417-...>MORE

See all ads


 

Community Newspaper Holdings, Inc.CNHI Classified Advertising NetworkCNHI News Service
Associated Press content © 2009. All rights reserved. AP content may not be published, broadcast, rewritten or redistributed.
Our site is powered by Zope and our Internet Yellow Pages site is powered by PremierGuide.
Some parts of our site may require you to download the Flash Player Plugin.
View our Privacy Policy
Advertiser index

 

 

The Joplin Globe Electronic Edition