For better or worse, consumerism is part of our society, and so are credit card debts. While this type of debt can be a financial burden for anyone, it can have a terrible impact on young people. That is why we want to talk about the irresponsible and materialistic use of credit cards and its consequences.
Putting vanity aside is a good starting point for a financial plan that can help you make smart decisions. Most irrational and dangerous spending choices are often influenced by the desire to project an image of wealth or impress others.
If you accumulate massive credit card debts, they become an obstacle to your financial growth. Young people may have access to credit cards early on without understanding how they work. That is why parents have to teach them how to use them properly and avoid making purchases that can jeopardize family finances.
Immature decisions can affect young people in the years to come, so they need to learn about personal finances and responsibility. Most teens get in trouble because they don’t think about the long-term consequences of credit card debts.
Here’s how you can help them understand how they work:
Note: Negative activity on a credit report can have lasting effects even if the person pays off past due debt quickly. It can take seven to ten years from the date of delinquency for the record to be removed.
Credit cards are useful tools, but credit card debts can become a problem, especially if we let our children make impulsive decisions. Make sure to teach them a valuable lesson today, one that will stay with them forever.