Explain borrowing and credit
Debt often plays a huge part in one’s physical and mental health throughout adulthood. It is crucial to develop financial literacy around borrowing in your children. This lesson allows a conversation about using credit as a financial tool in their everyday life, ensuring have an understanding of credit before they started using it as a vehicle to manage their finances.
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.
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.
Additional Lesson Resources
- Auto Loan Calculator by Cars.com: Calculate the cost of a car loan www.cars.com/go/advice/financing/calc/loanCalc.jsp?mode=full
- Easy Peasy: What is a Loan? Borrowing 101 https://www.youtube.com/watch?v=QwNNyTzPYhI
Financial Literature (FinLit)
- Consumer Financial Protection Bureau
- FINANCIAL BEGINNINGS https://www.financialbeginnings.org/download-materials/?topic=Financial+Foundations%7ECredit&learnerlevel=High+School&resourcetype=&role=Parent%2FGuardian&listview=
- Bank of America- Better Money Habits (Credit)
- STATE OF MISSOURI
- Credit Card Repayment Calculator http://www.financialcalculator.org/credit-cards
- FDIC Online Games
- Bank of America—Better Money Habits (Debt) https://bettermoneyhabits.bankofamerica.com/en/debt