Hello parents,
It’s me again, Kathy – a mom blogging about money and teenagers. Conjures up thoughts of trips to the mall, first new cars and other expenses large and small. You can relate right?
I was saying to my kids the other day that conversations about money shouldn’t always be about “spending it”. I prefer to talk about saving money and building good credit. (I find I have to have these conversations with them often to find what clicks and connects with them. Perhaps if I were to text them I could get their attention.)
Back to my point, I was reading the other day on WalletPop.com about the Top Ten Money Myths Held By Teens & How To Change Them. First, the article stated:
“Thanks to the fact that most teens rely on their uninformed peers to answer their pressing financial questions, there is plenty of misinformation passed around which makes it even harder for teens to get the straight facts about money and other personal finance topics like credit scores and banking.”
The Consumer Federation of America gathered some data that provides some valuable and surprising insights that will grab your attention.
Top 10 Money Myths Held by Teens:
1. I don’t have to worry about credit at my age.
2. Bad credit can’t keep me from getting a job.
3. All loan companies have the same rates.
4. All credit cards are alike.
5. The job of financial advertising is to tell the truth.
6. It’s OK to bounce a few checks.
7. It’s OK to make minimum payments on a credit card.
8. Paying late occasionally can’t hurt my credit.
9. Fine print isn’t important.
10. Young people don’t have credit scores.
Additionally, CFA stated only 73% of parents feel “very capable” of teaching their teens about money.
Well allow me to address number 6, which surprisingly came out of Gloria’s mouth the other day when I was paying some bills after dinner. So, here’s my advice… First, explain what a bounced check is – you write a check that you don’t have enough money in your account to cover. Next, let your teen know that bouncing checks not only can result in the closure of your account but they will appear on your credit report. Once reported it will remain for up to 5 years warning lenders and even potential employers that you could be a credit risk. Today, more employers are conducting comprehensive background checks including credit reports to protect both the company and their customers.
I will answer more of these myths in my next blog, but I simply cannot overlook mentioning the importance of the fine print! This is where all the claims credit card companies make in their advertising are clarified as often “to good to be true”.
Well I’m certain by presenting you with these Top Ten Myths I have provided a few surprises… I invite everyone to visit a few helpful websites and have some real one-on-one time with your kids about money!
Helpful websites:
“Visit www.U224U.com to learn more about GTE Federal Credit Union’s U22 checking account for 12 to 22 year olds. Because learning about money is important, no matter what your age!”
Also visit:
www.walletpop.com
www.msnmoney.com
www.fightdebt.com
) These classes are online through the GTE Federal Credit Union’s U22 program. All I do is sit at my computer and choose the subject that looks good to me. I’m thinking I am going to start with “How to achieve my financial goals.” Maybe this will help me focus on a goal and save for it the right way. I spent a lot of money on my back to school stuff. (I just HAD to have that disco ball for my locker!!) Now I need to save again. I have some good paying gigs coming up. Even though it is tempting to head right to the mall, I am trying to save so that when I get older, I have a head start with some money in the bank – make that the credit union!