Sound advice

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PeoplesChicken said:
Both of my kids are in their early 20's, and on their own accord are working on building healthy credit scores but making select purchases with a credit card. This card is from their bank, which also helps.
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It’s a shame that finance and credit management is not taught in HS, but I understand why. Nobody really qualified at that level to teach it. Maybe one day that changes.

But until then the best thing you can do for your kids is explain credit management, debt ratios and the benefit of down payments in loan to value terms when the time comes to buy a home.

Way too many young people mismanage their debts, have no money saved then try to buy a home with nothing to show they can responsibly manage a loan. Or they only quality for the highest rates and costs because of how risky they are to lend to.

You don’t wanna be that guy.
 
RobBase said:
It’s a shame that finance and credit management is not taught in HS, but I understand why. Nobody really qualified at that level to teach it. Maybe one day that changes.

But until then the best thing you can do for your kids is explain credit management, debt ratios and the benefit of down payments in loan to value terms when the time comes to buy a home.

Way too many young people mismanage their debts, have no money saved then try to buy a home with nothing to show they can responsibly manage a loan. Or they only quality for the highest rates and costs because of how risky they are to lend to.

You don’t wanna be that guy.
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Actually in our state, Financial Literacy is required for all HS Students. Mind you, it's still dependent on who is teaching it and how, but it can be done. Also a lot of schools work with Junior Achievement who brings in banking and finance professionals to talk about lending, credit, investments and the like. But lets remember, these are HS kids and I remember what my attention span was like in HS
 
Deep Dish Pizza Goat said:
Never open up credit if you can’t pay for it…
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I’ve helped hundreds of people both build and/or repair their credit. Teaching debt ratios is big one for sure. But everyone has to start somewhere.

Most people are going to need a car and/or home loan at some point in their life. Not everybody can pay cash for big ticket items. So teaching someone how to responsibly manage rotating debt is the best way to build good long-term financial habits.
 
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PeoplesChicken said:
Actually in our state, Financial Literacy is required for all HS Students. Mind you, it's still dependent on who is teaching it and how, but it can be done. Also a lot of schools work with Junior Achievement who brings in banking and finance professionals to talk about lending, credit, investments and the like. But lets remember, these are HS kids and I remember what my attention span was like in HS
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I can teach finance to anyone at any age, you just gotta find the right example that person will understand.

For young people I always offer a past, present and future you scenario. Past you is the guy setting up less work for present you and long-term growth for future you. Don’t let past you fuck over present you by not tackling the responsibilities in front of you now by putting them off for present and future you to deal with. I get more in depth but that’s the premise.

Everybody should always have a 5 year plan ahead of them. My 11 year olds have 5 year plans. It keeps them focused on their futures and puts the importance of their future selves in their minds now, giving them goals to work towards.

You can’t focus on anything that isn’t already planted in your mind, so envision it and work towards the goals you have not only now but 5 years from now. You’ll run into less surprises you aren’t prepared for using these methods.
 
RobBase said:
I can teach finance to anyone at any age, you just gotta find the right example that person will understand.

For young people I always offer a past, present and future you scenario. Past you is the guy setting up less work for present you and long-term growth for future you. Don’t let past you fuck over present you by not tackling the responsibilities in front of you now by putting them off for present and future you to deal with. I get more in depth but that’s the premise.

Everybody should always have a 5 year plan ahead of them. My 11 year olds have 5 year plans. It keeps them focused on their futures and puts the importance of their future selves in their minds now, giving them goals to work towards.

You can’t focus on anything that isn’t already planted in your mind, so envision it and work towards the goals you have not only now but 5 years from now. You’ll run into less surprises you aren’t prepared for using these methods.
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One discussion I had with my daughter, who is attending college, is there will be people coming to campus and trying to get you to sign up for a credit card. NOPE. You are getting one through your bank that has a package that fits your needs.
 
RobBase said:
I’ve helped hundreds of people both build and/or repair their credit. Teaching debt ratios is big one for sure. But everyone has to start somewhere.

Most people are going to need a car and/or home loan at some point in their life. Not everybody can pay cash for big ticket items. So teaching someone how to responsibly manage rotating debt is the best way to build good long-term financial habits.
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Imagine a world where someone has the cash to pay for Bombas

@Deep Dish Pizza Goat
 
PeoplesChicken said:
One discussion I had with my daughter, who is attending college, is there will be people coming to campus and trying to get you to sign up for a credit card. NOPE. You are getting one through your bank that has a package that fits your needs.
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College is when most kids start either building their credit up or beginning to destroy it along with their future. Very pivotal time in young people’s lives where shit can go south real quick.
 
PeoplesChicken said:
Actually in our state, Financial Literacy is required for all HS Students. Mind you, it's still dependent on who is teaching it and how, but it can be done. Also a lot of schools work with Junior Achievement who brings in banking and finance professionals to talk about lending, credit, investments and the like. But lets remember, these are HS kids and I remember what my attention span was like in HS
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Yeah, I was going to say that they teach that in our school district in HS.

Still a good idea for parents to teach the kids too. You can also give your kids a credit card from your account - make them authorized users - and that will build their credit history.
 
millennials and their take on finances are always amusing
 
SlinkyRedfoot said:
Yeah, I was going to say that they teach that in our school district in HS.

Still a good idea for parents to teach the kids too. You can also give your kids a credit card from your account - make them authorized users - and that will build their credit history.
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100%

you have to start somewhere.

but carrying a balance on your credit card is not good advice, IMO
 
ill said:
100%

you have to start somewhere.

but carrying a balance on your credit card is not good advice, IMO
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I have a friend who opened a CC in his son's name and uses it to make some larger purchases and pays it off to build his son's score.

With only a few exceptions that involve 0% interest, I agree with you about not carrying a balance. CC interest is ridiculous.
 
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