To avoid needing debt relief later, teach children early - Bills.com News

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To avoid needing debt relief later, teach children early

Tuesday, Oct 20, 2009
By Jennifer Hewitt

Rather than face the prospect of needing debt relief in the future, parents should take the time to teach their children about financial responsibility.

In a recent column for the GateHouse news service, writer Molly Logan Anderson noted that there are a number of ways for parents to get their kids to learn good money-management tactics at a younger age. Katie Ross, education and development manager for American Consumer Credit Counseling,told Logan Anderson that parents can start teaching their children when they are as young as 4.

"The earlier you can teach your child the concept of a dollar, the better they will be able to handle money situations as they grow," Ross said.

Another way parents can pass on some financial lessons is by getting their child a piggy bank. Doing so will teach their children that saving money is an important part of avoiding a situation where they will need debt relief.

Logan Anderson noted that setting a good example is also important. Cutting down on buying expensive or luxury items can show children it is possible to cut back when
money is tight.

Another thing parents can do is make sure their children understand the dangers of credit card debt. Though laws will come into play that will limit younger people's ability to get credit cards, parents should still play a role in teaching children that things purchased on plastic are bought with a loan, not with cash.


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