How do I debt proof my daughter?

Plutos_2

Definitly sit her down and talk about credit cards, overdrafts etc.

What killed me when I turned 18 was that i went from having £20 a month coming from nowhere (parents), a job that gave me cash to waste to the big bad world of credit. Moving to spending on luxuries to necessities was not really understood by me (and probably still isn't!)

I think an education about what credit means, how much it costs, how it can spiral is the most valuable thing. To be honest I couldn't have told you the difference between my 29% CC and my interest free overdraft or my old current account (God know why I kept it - they gave me £350 overdraft and I spent that as well).

Teach her that even in the medium run, the pain caused by the credit card debt is not outweighed by the pleasure from the new dress. It really does come back to bite you in the !!!, and much sooner than you might think!

What about getting her involved in your finances - I never really discussed this at all with my parents; something I think is a shame. Even if you've got big debts, it's nothing to hide.

PL

starling

This is something we were thinking of introducing for our two daughters (age 14 and 16) The question is how much would you consider to be enough for an 'everything allowance' - clothes, books, trips out. I know it's a bit like asking how long is a piece of string! When I was the 16 my mum gave me the family allowance which seemed OK to me but there again things were so different then, no mobile phones to credit etc, etc. Back in the dinosaur days as my kids call my youth!

fi

Gemmzie

I think an allowance is a really good idea.

From friends of mine, the ones who've jumped on credit cards as soon as they turned 18 were the ones who were given constant handouts from their parents every time they wanted £5 and the ones who were given no regular money.

seven-day-weekend

Dr.Lou wrote:

I really like that book too calleyw.

When I was a teenager, I think the best advice that my Dad gave me was to never get a credit card, and that most debt (apart from a few exceptions) traps you in and can stop you living the type of life you want to lead.

He also taught me to not care about what other people think (i.e. don't spend money to keep up with the Jones's.), and if I wanted something to save first.

This was shoved down my throat for many years and I think it did sink in eventually. At nearly 30 I still haven't had a credit card (scared of them now!! lol - although I did get a student loan/ overdraft during uni, but I guess that was a need not a want)

I think that if she follows your example she will be fine!

My son is 26 and has never had a credit card as he has Aspergers Syndrome and knows he couldn't handle one. He has also had no loans. He had a 'lightbulb moment' a few weeks ago, and said he was fed up at always being at the limit of his overdraft and asked me to work out a budget for him. I've done this and seems to be working so far.

To the OP, we can't always protet our children, al we can do is give them the input. Keep up the good work that you are already doing!:T

EagerLearner

When I was around 10 my mum started giving me $500 Escudos in Portugal (around £2 back then) per week. It made me really aware as I had to make it last to each Saturday... I bought stamps, sweets and saved as much as I could with the remaining money even if I really wanted something... as I grew older it became harder as she never increased the amount - but I came up with my own ways to make money as I did not want to ask her for more (although I sometimes tried!). Here in the UK it would be more difficult perhaps as she's under 16, but In Portugal I was able to catch seafood and sell it at the market, collect snails and sell those, plus make stuff like little rowing boats oout of lolly sticks and (try to) sell those... What I mean is, is there a way she can get creative and sell things to earn money herself, like finding things in charity shops or at car boots then selling on E-bay to make a profit? Or maybe she can help a neighbour with shopping, walk someone's dog? She'll earn her own money and once it happens once she will be so pleased and proud of herself she will carry on.

What my mum did for me with that pocket money was force me to be creative to the point that I now do things like using Quidco and last month earnt £108 for nothing really. Is she internet aware? Like the previous poster said, she could read some of the posts here to start learning things now...

When she starts realising that she can earn her own cash and not get into debt like her other friends will inevitably do you'll be very proud - my mum was so much so she mentioned my young entrepeneurial skills in her wedding speech for me - maybe you'll do that for her one day too ;o)

Sounds like she's been brought up to be careful with money so you've done a great job already. :T

LookingAhead

woohoo_postingid wrote:

Every time she wants to spend something, punch her in the face. - She won't want to spend money after a few times! LOL

Am I the only one who found that offensive?

EagerLearner

I think it is too - although the poster did say LOL - but still...

Prudent

Old_No.7 wrote:

Hi Prudent, I've read both books and they are both good. Not sure if a 14 year old with dyslexia would finish them, but you can always try. I'd hang in there with the clothing allowance: I was given one when as I was your daughter's age, and so was my older sister. My mum still thinks it's hilarious that my older sister would spend everything on 1 garment, and I'd buy books with mine, haha! My sister tried to get out of the allowance, thinking she'd be better off asking my mum whenever she wanted something, but I'm proud to say that my mum wouldn't let her.

If it's too much to manage, can she keep the clothing allowance in a separate purse perhaps, keep the receipts in there too, so she can see what she's spent and what's left. It really is the best way to learn: to do it yourself and make mistakes now and again.

Good luck with it!

I did try the sperate purse, but she kept forgetting to take both. Then she got confused is she bought clothes out of the pocket money purse and had to remember to repay it or vice versa.

The idea of letting her buy things like books out of it might work. Perhaps if I kept to a simple one amount for everything she needs, it might not be so confusing.

Prudent

woohoo_postingid wrote:

Every time she wants to spend something, punch her in the face. - She won't want to spend money after a few times! LOL

I want to support my daughter, not sabotage my relationship with her.

Prudent

These posts have been very helpful thank you. She is out just now, but I will let her read them later. The idea of reading some of the other posts on this board is a good one. She might see just how easy it is to get into debt and how hard to get out.