New laws will make it tougher for credit card companies to get college students hooked on easy credit, but if you are a parent, you can work with your child to make sure that they’re never even tempted.
You can do this by:
Setting a household budget and discussing it with your children so they have a realistic view of monthly expenses.
Having them do chores to earn a weekly allowance.
Requiring them to donate a small portion of that weekly allowance to charity and also to set a goal of some type – vacation fund? new ipod? – and set aside money for that. This will teach them how to save for things that they really want.
Don’t indulge them every time they want the latest toy. Make them earn it with chores, allowances, babysitting or lawn-mowing jobs, depending on their ages.
Don’t get into credit card debt yourself, and don’t indulge YOURSELF with new toys all of the time if you can’t afford it. Lead by example.
Have them join you in a volunteer work at a homeless shelter from an early age to give them an appreciation of all that you have and show them how much you really have in comparison to those less fortunate.
