Comments on: Help Your Child Manage Credit – A Contrarian View http://toughmoneylove.com/2009/10/09/help-your-child-manage-credit-a-contrarian-view/ The Hard Truth about Money and Personal Finance Tue, 31 Jan 2012 13:37:18 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Tim http://toughmoneylove.com/2009/10/09/help-your-child-manage-credit-a-contrarian-view/comment-page-1/#comment-7370 Tim Wed, 17 Feb 2010 15:57:27 +0000 http://toughmoneylove.com/?p=4726#comment-7370 Please look at the history of the national debt in this country and you will see that Reagan, Bush 41 Clinton and Bush 43 also loved debt. Silly attacks on the current president do not solve anything. Please look at the history of the national debt in this country and you will see that Reagan, Bush 41 Clinton and Bush 43 also loved debt. Silly attacks on the current president do not solve anything.

]]> By: Bryan Batson http://toughmoneylove.com/2009/10/09/help-your-child-manage-credit-a-contrarian-view/comment-page-1/#comment-6259 Bryan Batson Sat, 24 Oct 2009 15:46:38 +0000 http://toughmoneylove.com/?p=4726#comment-6259 Pressed enter to quick...doh The second part which I didn't see addressed in this article is there is a difference between good debt and bad debt. Consumer debt is bad of course and all the stuff that you acquire should preferrably be bought with cash and not credit with a few exceptions. It's essentially debt that takes money out of your pocket while never puting it back into your pocket. Credit can be incredible for increase your net worth and most importantly your income when used the right way. Good debt levrages yourself to buy income producing assets that puts money back into your pocket. I didn't learn how to do this in school and had to learn from people doing it already in the real world. Bad debt essentially imprisons you and good debt can set you free from corporate America and the rat race. None of this is taught in schools and most parents don't have a clue about the difference either. There's so much to talk about on the subject but I just wanted to add to your blog. Bryan Pressed enter to quick…doh

The second part which I didn’t see addressed in this article is there is a difference between good debt and bad debt. Consumer debt is bad of course and all the stuff that you acquire should preferrably be bought with cash and not credit with a few exceptions. It’s essentially debt that takes money out of your pocket while never puting it back into your pocket. Credit can be incredible for increase your net worth and most importantly your income when used the right way. Good debt levrages yourself to buy income producing assets that puts money back into your pocket. I didn’t learn how to do this in school and had to learn from people doing it already in the real world.

Bad debt essentially imprisons you and good debt can set you free from corporate America and the rat race. None of this is taught in schools and most parents don’t have a clue about the difference either. There’s so much to talk about on the subject but I just wanted to add to your blog.

Bryan

]]> By: Bryan Batson http://toughmoneylove.com/2009/10/09/help-your-child-manage-credit-a-contrarian-view/comment-page-1/#comment-6258 Bryan Batson Sat, 24 Oct 2009 15:34:41 +0000 http://toughmoneylove.com/?p=4726#comment-6258 Thanks for the post. Personal responsibility and delayed gratification is what I'm reading here in your words. I know whenever I was in college I lacked both. You touch on the first part of credit and the issue that gets most people in trouble with "consumer debt." What ever little money I can get my hands on I'd spend. Got my first credit card from a t-shirt giveaway and quickly overdrew that piece of plastic. It was essentially from my ignorance on what money really is and what credit should be used for. My debt increased, my net worth decreased, the assets didn't really go anywhere and my income was unchanged. Not what you should be doing how you should be using credit. Thanks for the post. Personal responsibility and delayed gratification is what I’m reading here in your words. I know whenever I was in college I lacked both. You touch on the first part of credit and the issue that gets most people in trouble with “consumer debt.” What ever little money I can get my hands on I’d spend. Got my first credit card from a t-shirt giveaway and quickly overdrew that piece of plastic. It was essentially from my ignorance on what money really is and what credit should be used for. My debt increased, my net worth decreased, the assets didn’t really go anywhere and my income was unchanged. Not what you should be doing how you should be using credit.

]]> By: Snowy Heron http://toughmoneylove.com/2009/10/09/help-your-child-manage-credit-a-contrarian-view/comment-page-1/#comment-6150 Snowy Heron Mon, 12 Oct 2009 15:34:36 +0000 http://toughmoneylove.com/?p=4726#comment-6150 Excellent post. Most of us babyboomers didn't get our first credit card until after we finished college. Back then, you were expected to be employed so that you could actually repay the loan, plus I don't think you could sign a valid contract before the age of 21 without getting a guarantee and I don't know of any parents in my parents' generation who would have done that. I have been trying to teach my kids this same thing. The oldest and youngest got it and have avoided credit cards. My middle child got a card from Citibank when she was a freshman (against my advice and without my knowledge) and totally screwed up. I think it contributed to her flunking out of school and really messing up her life. She is still working through the problems that this created. As far as I am concerned, the government can let Citibank go belly up. They deserve it. Excellent post. Most of us babyboomers didn’t get our first credit card until after we finished college. Back then, you were expected to be employed so that you could actually repay the loan, plus I don’t think you could sign a valid contract before the age of 21 without getting a guarantee and I don’t know of any parents in my parents’ generation who would have done that.

I have been trying to teach my kids this same thing. The oldest and youngest got it and have avoided credit cards. My middle child got a card from Citibank when she was a freshman (against my advice and without my knowledge) and totally screwed up. I think it contributed to her flunking out of school and really messing up her life. She is still working through the problems that this created. As far as I am concerned, the government can let Citibank go belly up. They deserve it.

]]> By: MasterPo http://toughmoneylove.com/2009/10/09/help-your-child-manage-credit-a-contrarian-view/comment-page-1/#comment-6129 MasterPo Sat, 10 Oct 2009 20:09:34 +0000 http://toughmoneylove.com/?p=4726#comment-6129 I think your flat wrong. You're teaching children the wrong things. Totally. The government can run up debt and not worry about paying it back. So why shouldn't they? Afterall, our Nobel Prize winning President supports the idea and more. He can't be wrong - he has a Nobel Prize! :-) I think your flat wrong. You’re teaching children the wrong things. Totally.

The government can run up debt and not worry about paying it back. So why shouldn’t they? Afterall, our Nobel Prize winning President supports the idea and more. He can’t be wrong – he has a Nobel Prize!

:-)

]]> By: Gail http://toughmoneylove.com/2009/10/09/help-your-child-manage-credit-a-contrarian-view/comment-page-1/#comment-6113 Gail Fri, 09 Oct 2009 16:32:59 +0000 http://toughmoneylove.com/?p=4726#comment-6113 Excellent post, 100 agree! It's bad enough that so many young people graduate college today saddled with the burden of 5- and 6-figure student loans...they don't need CC debt on top of this. And if parents realized the truth behind FICO scores they would be much more reluctant to co-sign and add their kids as authorized users to their own CCs. We have to stop the madness...young people desperately need to learn that living with consumer debt is not a normal, acceptable, and inevitable way to go through life. All this nonsense about "good debt" vs "bad debt" is warping our kid's financial attitudes and values. Excellent post, 100 agree! It’s bad enough that so many young people graduate college today saddled with the burden of 5- and 6-figure student loans…they don’t need CC debt on top of this. And if parents realized the truth behind FICO scores they would be much more reluctant to co-sign and add their kids as authorized users to their own CCs.

We have to stop the madness…young people desperately need to learn that living with consumer debt is not a normal, acceptable, and inevitable way to go through life. All this nonsense about “good debt” vs “bad debt” is warping our kid’s financial attitudes and values.

]]> By: cjbr549 http://toughmoneylove.com/2009/10/09/help-your-child-manage-credit-a-contrarian-view/comment-page-1/#comment-6112 cjbr549 Fri, 09 Oct 2009 15:27:52 +0000 http://toughmoneylove.com/?p=4726#comment-6112 I think raising the age limit is a good idea. I didn't have any business with credit when I was 19 (although I got it). The real eye opener was adding up all the interest I was paying and thinking that it was like piling it up and using it to fuel a bonfire. I don't know about the rest of you, but I will NEVER be rich enough to heat my house by burning greenbacks, so I put an end to it. I would consider cosigning a loan for a car for a kid, as I could repossess that and sell it if they were iresponsible, but never a credit card. A reliable car may be a necessity for them, but a credit card is not a necessity for anyone. I think raising the age limit is a good idea. I didn’t have any business with credit when I was 19 (although I got it). The real eye opener was adding up all the interest I was paying and thinking that it was like piling it up and using it to fuel a bonfire. I don’t know about the rest of you, but I will NEVER be rich enough to heat my house by burning greenbacks, so I put an end to it. I would consider cosigning a loan for a car for a kid, as I could repossess that and sell it if they were iresponsible, but never a credit card. A reliable car may be a necessity for them, but a credit card is not a necessity for anyone.

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