Teaching Our Youth About Debt
When asked, many of our youth were not really aware of what debt was. They thought it was something that could happen to someone else, but never to themselves. They also were not really sure how a credit card works or how to invest.
This is common among our youth, but now experts say that in order to deter our youth from ending up as in debt as our nation currently is, we need to start talking to them at an earlier age about what debt really means. With many not really understanding how a credit card works, thinking in a sense that it was “free money” and not realizing that it had to be paid back – this sets them up for failure later in life.
The reality is that debt consolidation has become such a common phrase in today’s society - which many often think of it as more of a right of passage than something to be avoided at all costs. A recent report showed that 90% of those questioned were in debt by the age of 21.
The report also found that one in five 18-24 year olds were not only in debt, but they were in debt to the tune of £10,000 or more. Most young people don’t start out with a lot of money, and with a lack of understanding how debt works it is very easy for them to go down the slippery slope that comes from credit cards and loans to pay for those things they think they need.
By teaching our children about debt, perhaps we can ward off a debt consolidation in their future. Only time will tell.
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