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I think at least part of the solution is to involve your children in your finances. I think if they are able to understand your families monthly/yearly budget,
by frankbreetz 7y ago
I think at least part of the solution is to involve your children in your finances. I think if they are able to understand your families monthly/yearly budget, they will be much less likely to take on a ton of debt, as they will more likely understand the consequences of their decisions.
The financial literacy in this country(USA) is absolutely terrible and I think this is one of the most important things a parent can teach there children, because they will not learn this in school. Part of the problem is that most parents themselves are not financially literate and do not have savings or budgets. Life is so much easier if you have a good understanding of money. People like to say "Money doesn't matter", security matters and freedom matters, good luck getting either of those things without money.
At this point it is very obvious the government or universities are not looking out for us in this regard, so this will be one thing my children understand.
- jays 7y agoAgreed. Showing a teenager how much they will make with the career their interested in and then figuring out how much they might afford in student loans is pretty easy to roughly estimate. It’s what should be taught in schools and banks should have limits as well. But banks and universities don’t wait those things, because it’d jeopardize the easy money.
- ip26 7y agoThere's a big catch with this though, your teenager/college student can't budget & spend like a mid career professional. $10k is far dearer to them than you. (They also have far fewer expenses) I don't know what the answer is, perhaps you start with basic financial literacy & later mock up what their life might look like with X debt and Y income.