How You Can Help Yourself!
Don't get your children hooked on credit. Co-signing a credit card for your kids (who could not obtain credit on their own) reinforces the main message of the card itself - Spend!
The message that credit card sends is:
- It's OK to buy things on credit that you couldn't possible afford otherwise
- It's OK to spend, even though you have no regular income
- It's OK to be in debt from spending money you don't have!
- It's OK to overpay for things with credit spending and having to pay interest.
- It's OK to PAY interest instead of earning interest on savings.
- It's not necessary to save in advance for things you may want to buy.
- It's OK to go into debt, even for things that do NOT retain their value
- Occasional impulse spending is OK.
- Credit is necessary for a student to make it through college.
- Don't worry! If you overspend and get into trouble, I'll bail you out. After all, I did co-sign and I have to protect my good credit record, don't I?
A smart consumer is an educated consumer. Consumer education is the key to understanding and coping with credit problems. Through consumer education you will expose future consumers (your kids) to responsible spending skills, and build awareness of financial responsibility and credit and debt.
"The magic of compounding interest is truly
the eighth wonder of the world!"
- Albert Einstein
