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Five Golden Rules to Help Keep Teenagers Out of Debt

Discussion in 'Off-topic Zone' started by adbutcher, May 5, 2004.

  1. adbutcher

    adbutcher K9NME

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    Consumers for Responsible Credit Solutions Says the Quest for Coolness Drives Teen Debts; Five Golden Rules to Help Keep Teenagers Out of Debt

    WASHINGTON, May 5 /PRNewswire/ -- Abercrombie is cool, Ashton Kutcher is hot, the X-Box is wicked -- in a good way -- and breakfast is for nerds. Welcome to the arcane, insular and frequently baffling world of teenagers.

    "Peer pressure to buy the latest fashion or the coolest gadget pushes teens to use the convenience of credit cards and run up debt," said Darrell McKigney, executive director of Consumers For Responsible Credit Solutions.
    "The growth of debt among teenagers and college students is a troubling phenomenon."

    According to a study released by the Consumer Federation of America, Dr. Robert Manning, author of Credit Card Nation, observed that student debt results from peer pressure, financial naivete, and aggressive marketing by credit card companies. "The unrestricted marketing of credit cards on college campuses alongside peer pressure ... now poses a greater threat than alcohol or sexually transmitted diseases," said Manning. In fact, a 1999 Youth and Money Survey found that 79 percent of students have never taken a class on
    personal finance.

    The marketing of credit cards has shifted rapidly over the last five years from young professionals to college freshmen and high school seniors. In fact, 80% of teens between the ages of 18 and 20 have credit cards and according to a George Mason University survey, three out of five of these students maxed them out during their freshman year.

    "The pressure is high ... from peers, credit card companies and makers of products targeted to the youth market ... but education is the key," says McKigney. "Parents and students alike must understand how to use credit responsibly. It is truly unfortunate for a teenager or a student when today's fleeting fashion becomes tomorrow's crushing debt."

    Consumers For Responsible Credit Solutions has launched a website,
    http://www.responsiblecredit.com, to assist parents and teenagers in developing sound financial skills. "Education is the best defense against aggressive marketing to teenagers," said McKigney. "CRCS' own program, 'Kids and Credit,' is a free, educational program that provides the resources and tools for parents to prepare their teens for using credit responsibly."

    Consumers For Responsible Credit sets forth Five Golden Rules for parents whose teenagers are succumbing to marketing and peer pressure that threatens to get them in over their heads in debt.


    1. Don't give your teenager a credit card unless they have a proven record
    2. Give your child enough pocket money to encourage saving, even if it's only $1.
    3. Don't be too tough if they overspend a few times. It's human nature. But if a child repeatedly lives beyond their means, it's your responsibility to offer help.
    4. Set rules about what you don't want them to buy -- for example, junk food.
    5. Set a good example for them. They will follow your lead, so it's your responsibility to be a good role model.
    Teenagers may know terms such as checkbook and credit card, but that
    doesn't mean they understand day-to-day money matters fully. You don't have to involve them completely in running the 'family business,' but teenagers should have a sound idea of what household finances are about. This is good training for the sort of decision-making they will inevitably face as adults. Consumers for Responsible Credit Solutions (CRCS) is a nationwide group of consumers whose mission is to help Americans successfully manage debt and
    avoid bankruptcy.
  2. BrAinPaiNt

    BrAinPaiNt Brotherhood of the Beard Staff Member

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    Two words to solve the problem....Duct Tape :p

    On a serious note....make the kids earn the money first and then pay in cash.
    Of course that is easier said then done...even in adults.

    Had Ad...was wondering how everything is looking for your big move....you know I am depending on that over the top of the garage apartment. ;)
  3. BulletBob

    BulletBob The Godfather

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    Did you start the new job yet, Ad?
  4. DallasCowpoke111

    DallasCowpoke111 Benched

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    ??? This makes NO sense to me.

    give a kid "pocket money," no mater WHAT the amount, and expect that what, they're gonna stop off at the local savings & loan and open an account on their way to the MALL!!!???? puhhhhhhhhleeeeeezzzzz!!!
  5. adbutcher

    adbutcher K9NME

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    I start on the 24th of this month, I will stay a week with one of my Frat bros there. The family will follow week later for a house hunting trip and the following week for good.

    Carrier has done a wonderful job with the planning, they are very well organized and efficient. Hell, I even heard from my mentor and he informed me of exactly what I will be working on. In my line of work that is totally unheard of. :)

    The only con so far is that I won't have time to lurk during work hours any more. :(

    Edit: Brain whenever you are in town, just let me know we will definitely hook up. Also keep in mind that Tyler is in a dry county so we have to drive to the line (inside joke) to get some alcoholic libations.
  6. BrAinPaiNt

    BrAinPaiNt Brotherhood of the Beard Staff Member

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    Sounds like you really got into a great job...seems like your hard work is really paying off.

    Oh and I am just teasing...chances are I will never be out that way...but I do appreciate the offer.

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