Spooky Mistakes Teens Make with Money
Happy Halloween, moms and dads! To celebrate, today we’re donning our costumes to bring you five of the most common—and spooky—ways kids and teens can get into a financial bind.
Accumulating Credit Card Debt
Here’s a startling tale: more than 80% of college seniors have credit card debt. All this before they have jobs! We’ve all heard the importance of building credit, and many parents encourage their teens to open a credit card to start the process. But a credit card alone won’t help create a healthy financial future. Only responsible spending and timely payment can do that. If your teen regularly overspends, a credit card isn’t going to help anything.
Take it away, Adeal.
Underestimating the Cost of Moving Out
All teens have dreams of moving out, but many underestimate the costs. When living with mom and dad gets old, our rent-free tenants are quick to acquire rose colored glasses about the outside world. How expensive could it be?!
Rat Man and Bobbin are finding out the hard way.
Being Unprepared for a Rainy Day
The same is true in teenage years as it is in adulthood: financial mishaps have a way of snowballing. Having a rainy day fund can go a long way toward preventing future money mistakes, like unnecessary credit card debt. A good first step? Stop using your mattress as a bank account.
Tell us what to do, George Bailey!