Teenagers Need to Learn Responsible Spending

WEDNESDAY, FEBRUARY 21, 2007

Today ís teenagers are finding themselves in debt before they reach the age of 18, and sadly, many of them donít understand the concept of paying it back. Some of the young people see overdrafts as a way to make their money stretch farther until payday, while others feel that credit cards either do not have to be paid back or are there for them to spend and their parents to pay back.

Of those interviewed by the Personal Finance Education Group, two-thirds of the teens wanted to learn about investing and almost half wanted to learn more about saving and curbing their spending. Itís an improvement, but that still leaves a good number of teens who donít have any idea of the importance of responsible spending. It is not always the fault of the parents in not teaching them, but of the stores who lure the teens in to purchase high-priced goods that they ìjust have to haveî and friends who entice them into the high-priced Mallsóafter all, itís just not ìcoolî to shop in discount stores.

Often the credit card issuers are to blame because they offer credit cards to the high school and college students with their parents to back the cards. What the students donít understand is that their lake of responsibility is going to hurt them as they begin to establish credit and open bank accounts, both of which you need in order to even think of buying a card or renting an apartment. The teenagers today need more financial education while they are still in school and not just how to save and invest money, but how to spend responsibly If they do not learn before they are old enough to have credit of their own, they will be unable to know what to do when that time comes. Only by teaching them early will they know how to stay out of debt and spend responsibly when they have left school and gone out on their own.