If you knew then what you know now...

consultant31

My Mum has always been a careful manager of money and terrified of debt - a fear she passed on to me (thank goodness).

I encouraged my children to put half of their pocket money in a piggy bank and spend the other half. Then, when Christmas came round they all had money of their own to buy presents for each other, friends etc and they used to get such a thrill out of buying the gifts on their own.

My son came out of Uni with less than £1000 debt, which was paid off within a few months - he has friends who are still hugely in debt and freely admit it was because of all the drinking, partying etc they did.

I have said before that money management should be taught in schools and even called on Martin to do a Jamie Oliver type thingy and push for this valuable lesson to be part of the national curriculum.

Come on Martin, do yer stuff!!!!!!!!!!!!!!!!!!!!!

HannaB

STUDENT DEBTS!! When I was a student, I was the only person I knew with a part time job. I earnt about £400 a month, but still took advantage of the full student loan/overdraft/credit cards. I had SUCKER written on my forehead. There was no excuse for it and I have nothing to show for the thousands (well, a 2.1.). They should teach A level students how to not be a target if they plan to go to uni.

buxtonrabbitgreen

I was never in debt until the first time I went abroad to visit my son who was living in Denmark. The bank convinced me that I should have a credit card as I shouldn't use my debit card, in case it got stuck in a cash machine. I had only gone to the bank to change some currency from cash. Anyway it all went wrong from there on in. I had no debt all my life, except a small mortgage. Now I owe about £6000. And on my low wages that is a lot. So my advice. You don't need a credit card. Don't do it.

painted_lady

I think the problem is often discipline, not lack of knowledge or ability to budget, I myself am guilty of lack of discipline.
However, I intend to get my child involved in money saving and teach him about finance myself as he grows up. I will encourage him to put some of his money in his trust fund and whatever other accounts he has, I will use it to teach him about the stock market etc and hopefully then he will have some concept and understanding of working towards a goal and he will be equipped with the knowledge needed to not get himself ripped off. I will however teach him that debt can be a positive thing.

nissar3

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HannaB

Also, I would not have bought things on "interest free for 9 months" schemes (and then not paid it in full before this date). My stepdad always said you shouldn't buy things without being able to afford them outright. I didn't take heed of this when I should have done.

Reformed

I wish I had known, the money is better in your pocket not theres so shop around for the best deal - only buy a few clothes and shoes. And I wish I had undestood compounded interest. Then I wouldn't have overspent on credit cards and would have saved more. I would have spent my money on travel not clubbing. I'm glad I am where I am now though

DebtphobicDeirdre

My DD is hoping to go to Moldova on a charity trip next year and has to finance it herself plus work while she is out there. Moldova is the poorest country in Europe, it is between Romania and Ukraine. Most people there are subsistence farmers and horse and cart is a common means of transport. If that doesn't teach her about the difference between needs and wants then nothing will.
BTW they do teach about interest and compound interest at school.

Sueb_2

:rolleyes: I wish I had known...

I would have learned how to stay within my cash budget, never taken loans or credit cards and how to put money away for a rainy day. It's fine tarting to zero rate cards but not if you then start spending on that card, too.

I am always telling the kids to spend within your limit and plan what you will spend - you can't have it if you haven't the money......

I got into debt when I was funding 2 young children at nursery out of one salary and thought I could handle it and a credit card and then the bank offer you a loan when you didn't ask for it and you take it and.....

I owe:

£20,000 and am looking at 5 years to pay it off. I have been supported by National Debtline and they were lifesavers. I know I have to pay it off but I don't have to worry about it now - I stay within budget and it is strangely liberating. If I can't afford it there isn't a decision to be made. Oxfam have great books..there are good factory/seconds shops - hey I'm still hereXX