April 12, 2016

Why Children Need to Learn the Benefits of Debt

While "it is useful to teach our children about the dangers of debt. But we also need to make it clear that debt can also be a useful tool." "We need to demonstrate that we can go into debt and bring ourselves out of it in order to build a strong credit profile. We show creditors on paper our resolve and ability to meet our obligations, thus keeping our cost of credit low. Taking on debt allows us to reach our aspirations—to acquire assets that are of value to us–such as a house, education, reliable transportation or starting a business. These things define the American Dream, and they are difficult to achieve without debt." "
"A healthy skepticism about debt is good, and it is what we should teach our children. And if you think you can sidestep this whole debate by keeping silent, know this: By teaching nothing you are in fact teaching something. Parents, if we do not discuss the positives and negatives of finances, we leave our children defenseless to figure it out on their own." Author Ted Beck is president and CEO of the National Endowment for Financial Education, a member of the President’s Advisory Council on Financial Capability for Young Americans and chairman of the Jump$tart Coalition. Read his full article at: http://blogs.wsj.com/experts/2016/04/07/why-children-need-to-learn-the-benefits-of-debt/

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