Can to teach your children about debt? As a twenty first century American debt is something that we all know about. I am in debt. You are in debt. Our government gives a whole new meaning to the word debt. What we need to do is teach our children to avoid it and to respect it if they use it.
In his Conscious Prosperity workshop, presenter, John S. Moore sets out a framework to raise a family not seduced by the temporary buying power that debt promises. Want something? Why wait? Buy it now. Whip out the plastic. Why pay for something now? Pay for it over 30 years.
Why are you reading a website for a Cleveland bankruptcy attorney? Could it be that this is the way you have done things for as long as you can remember? Isn’t this the way that mom and dad did things? Let’s not talk about our grand parents and great grand parents with all the depression stuff. Credit cards are the way to go. Just touch it to the terminal and you are good to go. Easy. Fast. Fun. Until next month.
There is a better way to live and teach your children about debt at the same time. You have to start early. How does a child learn anything? They watch you. You lead by example. They talk like you. They walk like you. They do everything like you. Even spend money like you.
John Moore suggests 8 Steps to teach your children about debt.
- The first rule is honesty. Your debt problems are yours. Don’t drag your children into them. If you are deep in debt that you can’t pay, don’t have your child lie for you. How many times do you have your child answer the phone if a bill collector calls and say you aren’t home? Even if you are? Screen your calls with an answering machine or voice mail.
- Pay for everything in cash. Especially when you are with you children
- If you have to use a credit card in the presence of you child, be sure to share the credit card statement with them to show how much using the credit card costs, and reinforce that these costs have to be paid with real money.
- If all you do is buy with checks and debit cards all you are teaching is that money comes from a machine, not from hard work.
- It is alright for your children to go without some of those thing they just will “die if they don’t have.” I used that one all the time on my parents. It worked.
- Teach your children to save 25% of their money for something they want, and to invest 25% for the future. Your child’s savings is theirs, not yours no matter how much you need or want it. Your problem is not theirs.
- Hold your child accountable for her commitments. To do that you will have to be accountable for your commitments.
- Accentuate the positive. Don’t say, “we can’t afford that.” Do say, “I do not wish to spend money on that.”
Your money behavior with your children now is the key to the future. Your children and grandchildren do not have to spend their lives with tens of thousands of dollars in debt that they will never be able to afford to pay when faced with life’s curve balls.
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