Educate your teenagers about avoiding debt

Educate your teenagers about avoiding debt

19 June 2008

Credit card debts are a growing problem in Australia and if we don't teach our teenagers how to manage their money now, the problem will only get worse. Nearly every teenager has a mobile phone these days and more and more teenagers have regular access to a credit card. And it's the parents footing the bills and ending up with credit card debts because their teenagers aren't educated about debt.

To educate your teenagers about how to avoid credit card debts and debt in general, help them manage their own money.

Teenagersare very susceptible to peer pressure to have the ';right stuff'. And this ';right stuff' can be extremely expensive. If they have an afterschool job, they might be able to afford it themselves. Be sure to explain to your teenagers about savings and how interest works and encourage them to have a savings goal.

Teenagers, should be encouraged to:

• Use prepaid mobile phones instead of plans.
• Use lay-by instead of paying for an item outright.
• Save loose change for things like public transport.
• Identify savings goal and save money to help achieve them.

By educating teenagers about how to avoid debt and the value of saving, you'll be preparing them for the rest of their lives.

For more information on how to avoid credit card debts, please view our credit card tips page and our balance transfer credit cards page.

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