Good read! As a long time, ex banker we wish that financial 101 was taught to teenagers before they reach the 18-year age of credit card responsibility and acceptance. The educational system in most countries is missing this key ingredient to becoming an adult. Included in such a classroom would be how to buy real estate and what is a mortgage among other simpler items like keeping a checkbook and what are savings vehicles like (CDs) certificate of deposits. We taught these classes in smallish hands-on forums, but the reach was not what school districts could accomplish.
Parents could also help young people learn how to use credit cards through a secured product. Secured Card is similar to a pre-paid card, where your credit limit is set to a low amount (say $200) which you need to deposit with the bank.
Outside the US, where building a credit score early is advantageous, I don't see why teenagers elsewhere would need one. Having a credit card is not the only way to learning financial responsibility. I'd rather young people learn how to invest early.
Financial responsibility could also be taught in video games. I learnt about trading items and scamming when I was 14 on Old School Runescape. That was 2 decades ago. Games with in-game economy could be a better simulation to teach financial responsibility than adults realise.
Good read! As a long time, ex banker we wish that financial 101 was taught to teenagers before they reach the 18-year age of credit card responsibility and acceptance. The educational system in most countries is missing this key ingredient to becoming an adult. Included in such a classroom would be how to buy real estate and what is a mortgage among other simpler items like keeping a checkbook and what are savings vehicles like (CDs) certificate of deposits. We taught these classes in smallish hands-on forums, but the reach was not what school districts could accomplish.
Do people still use checkbooks?
Agreed!
Parents could also help young people learn how to use credit cards through a secured product. Secured Card is similar to a pre-paid card, where your credit limit is set to a low amount (say $200) which you need to deposit with the bank.
Outside the US, where building a credit score early is advantageous, I don't see why teenagers elsewhere would need one. Having a credit card is not the only way to learning financial responsibility. I'd rather young people learn how to invest early.
Financial responsibility could also be taught in video games. I learnt about trading items and scamming when I was 14 on Old School Runescape. That was 2 decades ago. Games with in-game economy could be a better simulation to teach financial responsibility than adults realise.
Great advice!!
Super educational lots of great pros and cons 🎯
glad you liked it! :)