Livid. The bank and the teenager's overdraft

YorkshireBoy

McCreary wrote: »

This is the reason why financial management and general understanding of how the economy works should be taught in secondary schools. I'm saying this as a teacher myself.

What should be dropped to make way for it?

Unless you're suggesting 3.30-4.30pm or Saturday mornings? In which case I'm all for it.

pupsicola

McCreary wrote: »

This is the reason why financial management and general understanding of how the economy works should be taught in secondary schools. I'm saying this as a teacher myself. We live in an 'instant' culture where people seem to think they are entitled to the latest gadgets or luxury lifestyle even in they cannot afford it.

A couple of decades ago if you couldn't afford something you either worked more hours and saved up or just did without. Now the amount of young people who run up overdrafts and credit cards to get things like iPhones is becoming epidemic. Again, I say this as a young person (early twenties) who likes gadgets but pays for them with my wages.

Banks are greedy because they want to make money off people like the OP's daughter. In a perfect world they would offer advice on what was best for your daughter but to put it bluntly they want her to be in debt so they can make money off the interest she will incur. Schools don't educate children about this and young people live in a culture of entitlement - this is the reason your daughter is in debt. Personally, if I was her parent I would use this as a 'lesson learned' and support her through it - she's probably scared and embarrassed. Make it clear that you will help her on this occasion only and tell her to learn from it. I do not mean pay off the debt, but rather support her in lowering her rent slightly or something along those lines. If she does it again then it is, indeed, her problem.

I completely agree with you. It should be part of the curriculum to make young people money savvy. All the education in the world isn't going to help them if they dont know the basics of living within their means and to a budget.

glider3560

pupsicola wrote: »

my parents house ended up getting blacklisted.

Addresses don't get blacklisted - only people have credit records, not addresses.

opinions4u

McCreary wrote: »

This is the reason why financial management and general understanding of how the economy works should be taught in secondary schools.

A bit like they teach kids how to avoid pregnancy, yet we have the highest teenage pregnancy rate in Europe?

By the way, my school taught me Maths, Economics and Business Studies. I don't know any school or any pupil that doesn't have access to Maths lessons. It's not a major leap of logic to go from basic arithmetic, as taught from age 5, to working out how much you earn and how much you spend.

Banks are greedy because they want to make money off people like the OP's daughter.

Businesses exist to make money. Are teachers greedy because they take a wage for educating our children?

In a perfect world they would offer advice on what was best for your daughter but to put it bluntly they want her to be in debt so they can make money off the interest she will incur.

They will be quite happy with her being in debt as long as that debt is managable. Equally, they would be delighted if she had savings, because they could lend those to somebody else at a higher rate.

If the daughter asks to borrow money, they will doubtless discuss with her the different options of meeting that request.

Schools don't educate children about this and young people live in a culture of entitlement - this is the reason your daughter is in debt.

Generations of kids were not taught personal finance. The majority coped without being nannied. While you may be right about the "culture of entitlement" that doesn't automatically make everybody stupid. Just those who choose to be.

Personally, if I was her parent I would use this as a 'lesson learned' and support her through it - she's probably scared and embarrassed. Make it clear that you will help her on this occasion only and tell her to learn from it. I do not mean pay off the debt, but rather support her in lowering her rent slightly or something along those lines. If she does it again then it is, indeed, her problem.

Pretty much in agreement with this. I wouldn't cut the rent though. I would make it absolutely clear that the first bill to pay every month is the one that keeps the roof over your head.

I don't think the OP has actually returned. I wonder if the daughter actually pays any rent? If not, that should change, even if it's only a nominal amount.

pupsicola wrote: »

It is appalling that the bank allowed such a young person with so little income to have that amount on an overdraft.

So should all students be declined overdradfts?

Of course at 18 she is going to be like a kid in a sweet shop and go on a spending spree.

What an insult to the majority of 18 year olds.

Personally I would feel like going to speak with the bank manager and pointing out the idiocy of their actions.

Why? Do you really think the bank manager has the authority to approve or decline an overdraft these days?

pupsicola

glider3560 wrote: »

Addresses don't get blacklisted - only people have credit records, not addresses.

It did get blacklisted and they had awful trouble getting credit. Nothing to do with their credit records which were unblemished.

jimjames

pupsicola wrote: »

I completely agree with you. It should be part of the curriculum to make young people money savvy. All the education in the world isn't going to help them if they dont know the basics of living within their means and to a budget.

Based on the number of people in all walks of life that don't understand finances I would guess there are a fair few teachers that don't which could make for interesting lessons!

darich

pupsicola wrote: »

It is appalling that the bank allowed such a young person with so little income to have that amount on an overdraft. Of course at 18 she is going to be like a kid in a sweet shop and go on a spending spree.

Personally I would feel like going to speak with the bank manager and pointing out the idiocy of their actions. I can empathise with you thinking that just because you have an account with this bank too you will not be clearing your daughters debt. If she isn't normally so reckless hopefully she will see the error of her ways and get this debt cleared quickly. It could help teach her about the value of money and that there is no such thing as a free lunch.

My cousin got into a mess with her finances whilst living wth my parents as a teenager. An overdraft problem was the tip of the iceburg and my parents house ended up getting blacklisted.

At 18 a person is considered an adult.
They can buy a house, vote, get married, have a family, drive a car, drink in a pub and do many other things

Why are the bank idiots because a silly teenager spent too much?

I was 18 once, and I didn't act like a kid in a sweetie shop. When I was 19 I got a bank loan for my first car, and paid it back every month as I was meant to.

The blame here lies squarely at the feet of the account holder, in my opinion.

anna42hmr

i have to say, i understand and agree what people state that it should be included in education, or at the very least something like the PDF guides here:
http://www.moneysavingexpert.com/family/Teenagers-cash-class
or the pack from this site
http://moneysense.natwest.com/schools/students
should be provided to every secondry school age child in the uk

jen245

At 18 I was living by myself, working 2 jobs and going to university, sounds to me OP needs to let het daughter grow up and take responsibility for her actions

DCFC79

OP you need to let you daughter sort it out for herself, no need to give the bank a piece of your mind as that may not help the situation, she hasnt yet spent more than the OD but she needs to pay it off before she spends anymore