Lesson 8

Explain borrowing and credit

It is crucial to develop financial literacy in our children for no other reason than to help them have good health, both physically and mentally during their adulthood. Show me an adult that didn’t get off on the right foot financially and I’ll show you an overstressed individual that is either not in good health or heading for some health problems.

Debt often plays a huge part in that. People who tend to overextend carry the weight of the world on their shoulders as they worry over how they are going to get out of their predicament. But how did they get into debt in the first place? They probably never had a conversation and thought it through before they started using credit as a financial tool in their everyday life.

1) READ THE CHAPTER

For information and a deeper dive into having money talks with your kids. Read the chapter with relevant financial literature to give you a sufficient foundation on the topic. Order your copy of the book below.

2) LISTEN TO THE PODCAST

Listen to this topic episode that will walk through questions to ask your child and get the conversation flowing, with answers to the likely responses.

3) SEND THE TIKTOK

Here’s the video for you to send to your child, so you can set the stage on the topic you’ll be discussing in a language they understand.

@totalcents It’s better to earn interest than to pay it. #protectyourwealth #moneytalks #financialliteracy #finance #moneytok #learnitontiktok #personalfinance #interest #borrowingmoneyfromthebank #credit ♬ original sound – Total Cents
4) HAVE THE MONEY CONVERSATION

Using your printed one-page conversation guide and enjoy the dialogue with your family to get them financially launched. Now’s the time to discuss and start the conversation.

Total Cents Podcast Lesson 8 Explain Borrowing and Credit

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