How do I debt proof my daughter?

Rallya

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

If you were trying to be funny...you failed

Basil_Hume

One the reasons that you may be prudent is that you have experienced / know of the consequences of debt.

For me, it was working for two years in a Citizens Advice Bureau as a student part-time job. I was typing correspondence between CAB, clients and creditors, so I got to know the consequences of debt. Thankfully, I learned these lessons without hardship myself, but many here I'm sure have found out through personal experience.

My grandparents never, never wanted to get into debt. They grew up in the depression of the 1920s and 30s (my grandad walked from Tyneside to London to find a job) and were adamant that they should never get credit or even a mortgage - they rented throughout their life despite being quite well off and always saved before buying. In fact, they would have been financially better-off in hindshight buying a house - but you get the idea.

My idea would be to let your daughter experience the outcomes of overspending somehow, e.g. ensuring she repaid an early pocket money. Otherwise it sounds as if you've done quite a lot already. In some respects at least, we are all victims of the capitalist system and especially advertising. Teach her to see through fashion and adverts (I'm always psychologically deconstructing car adverts, e.g. depicitions of power / masculinity etc - it annoys my g/f no end!) and you may have won half the battle!

Kelinik

I'm finding this a very interesting thread. My two daughters are a lot younger than yours Prudent but I'm starting to think about pocket money for them and when/how to teach them about money. They've both just had quite large amounts for their birthdays so now is possibly not the best time to start but I'll definately have a think about how to tackle it.

ZTD

Unfortunately, you cannot 'proof' anybody against anything. All you can do is open their eyes to the emotional manipulation and hidden agendas that surround them.

The only thing I could really suggest is showing her the power of compound interest both working for her and working against her. Interest upon interest upon interest can build a huge tower to stand upon and reach for your dreams, or a tremendous weight to be crushed under.

After that, the choice is hers.

Dr.Lou

http://money.uk.msn.com/planning/life_events/raising_a_family/alvin/article.aspx?cp-documentid=458578

Hi Prudent,

Just seen this article on MSN from Alvin Hall about raising kids that can hold on to money.