Debt management do you think it should start at school

SuzySu

(Back on topic)....My parents never paid for anything on credit - if they could not afford it, they waited until they could. I was always taught to keep track of where my money went and to put 10% away for savings and not to spend unnecessarily (is that the correct spelling, ryandj). They did what they could to teach me the value of money. Unfortunately with so much available credit and loans to pay off other loans, this is what has led me to where I am now.

I still know the value of money and know what I should be doing - I just got carried away with the 'buy now, pay later' idea.

fizz26

ryandj wrote: »

I don't think they should teach debt management, but personal finance is a must. How to budget and that kind of thing. Interest rates and compound interest are taught in maths lessons, but its the people who don't pay attention who don't learn.

I don't mean to be rude, but I will admit I am a little obsessed with correct spelling. I have corrected some of your spelling above. Perhaps you paid as much attention in maths as you did in English.

Maybe if you could add up you won't be here trying to get out of debt too.
Im human not a nerd

ZTD

Well what makes it so difficult about being a saver is that interest rates are now so far below the rate of inflation, that you lose spending power if you save, and gain it if you're in debt.

staffie1

fizz26 wrote: »

Maybe if you could add up you won't be here trying to get out of debt too.
Im human not a nerd

Fizz - just ignore the smart !!! - don't encourage them - stick to the topic as it's a very interesting one

Sharon87

I was only taught about interest rates in school, which is all a blur now anyway. The problem is by the time you leave school and are old enough to get credit you've forgotten half of the things you were taught in school! I know I have!

I think the parents should help their kids understand finance, although a lot can't understand finance themselves! I learnt from my brother's mistakes and my dad's mistakes. Hence why I have never got a credit card and only got on overdraft so I could pay for uni things like deposits on halls.etc

meerkat2007

It would be good if schools could teach the theory of personal finance, and then children see it implemented by their parents as everyday examples of doing it the right way.

However, bearing my own parents in mind, parents don't always know the basic principles, and therefore are incapable of demonstrating to their children how to manage their finances sensibly on a day-to-day basis.

Therefore, for children in the position I was in while at school, it would be more helpful to be taught the principles of personal finance by school, rather than try to learn it from the bad examples my parents were.

And not just the principles, either - people need to learn all the implications of paying interest on debt for meaningless "stuff", and what can happen if it all goes horribly wrong when you lose some or all of your income.

ryandj

staffie1 wrote: »

Quite right - it's not an English test.

Sorry, I know, I am annoying!

My point was that a lot of people leave school without being fully literate or numerate. Either down to the education system or due to not paying attention.

Finance does get taught in school, at least it was when I went to school - and that was not all that long ago.

ryandj

fizz26 wrote: »

Maybe if you could add up you won't be here trying to get out of debt too.
Im human not a nerd

I am actually not in debt, apart from a mortgage. I can add up. And do fractions.

Finance is just quite basic mathematics really. Interest rates or just percentages. Planning a budget just involves taking away what you intend to spend from what you earn, and having a little bit left over for emergencies.

staffie1

ryandj wrote: »

Sorry, I know, I am annoying!

Finance does get taught in school, at least it was when I went to school - and that was not all that long ago.

When were you at school? It wasn't taught when I was at school 19 yrs ago, and nothing since - apart from this very website.

staffie1

ryandj wrote: »

I am actually not in debt, apart from a mortgage.

Errm..you are in debt. A mortgage is a liability secured against your home. A liability is a debt.