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TALK MONEY, PREVENT DEBT:
A MESSAGE FOR PARENTS AND COLLEGE STUDENTS.
By Susan Powell
"I don't know how she's going to survive when I'm not paying the
bills! She has no idea how to balance a check book; no idea what
it costs to live."
If you are the parent of an 18-25 year old, you may identify with
these words. I hear this sentiment time and again from parents
of this age group when I speak of the need for credit card
education. Interestingly, from students and recent graduates, I
hear voiced concerns about money and admissions that financial
education, as early as freshman year, would have been beneficial.
Young people want to know about money, while parents worry over a
child's lack of knowledge.
Something is getting lost in the shuffle, but one thing is for
certain: college graduates are entering the real-world with
little education about money. Many are failing.
In today's fast paced society that thrives on instant
gratification, debt prevention should be a college prerequisite
and the "money-talk" should rank in the top five pressing issues
to address with your child.
The 18-25 year old demographic is unsaturated and highly
solicited by credit card companies every year. Young people are
often unexposed to the costs of living and unaware of the
sacrifices parents make to pay the bills every month. On their
own for the first time, young people turn to credit cards as a
harmless means of financial support when money is scarce and
financial ties to mom and dad have been cut. This population
doesn't have the savvy to understand how credit cards work and
many find themselves in debt in no time. Credit cards, if used
without know-how and caution, can quickly destroy a young
person's financial future. This debt is difficult to repay and
carries significant consequences on a young person's bright
future.
These days, credit reports are very influential and are used for
more than just buying homes and big-ticket items. Recently, it
has been reported that employers are using credit reports as
part of the hiring process. With this in mind, it is essential
for young people to understand how to demonstrate positive money
management to protect the state of their credit report and their
future. Avoiding credit card debt goes a long way towards this
effort.
With millions of students off to college soon, this is the
perfect time for the must-have "money-talk". This conversation
can help young people understand basic personal finances before
they are pressured to make financial decisions without your
guidance.
What's getting lost in the shuffle is debt prevention: education
and knowledge about money. Parents can significantly impact and
influence this issue.
This fall before your child goes off to school, talk money and
prevent debt. When your child has avoided the pitfalls of the
credit trap and is off to a good start with money, they will hug
your neck for it.
Copyright (c) Susan Powell, 2003
ABOUT THE AUTHOR: Changing the face of predatory lending, Susan
Powell is a debt prevention/financial literacy expert and author
of the new book, "Credit Card Debt: It Can Cost You Your Life".
She frequently writes and speaks about financial literacy. Details
about the book and financial literacy training at www.DontDoDebt.com
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