Giving an Irresponsible Teen a Credit Card? Why?
Today’s teens are spending more money in one week than their grandparents made in a month. According to recent statistics, teens are spending around $200 a week and doing nothing. It is great work if you can get it. Around two-thirds of this money is spent to fulfill their wishes, whatever they may be, and the rest is spent on food.
Kids get allowances and credit cards without having to do anything in return. Strangely enough, a lot of parents believe giving their kids credit cards will teach them financial responsibility. In fact, it often has the exact opposite effect. What they learn is that you’re going to give them money whether they ask for it or not. This results in diminished motivation to work for a living. Consequently, the army of unemployed people simply burgeons.
Statistics show that people under 25 are the biggest group of bankruptcy filers. Teens view their parents as impulsive and impetuous consumers, to whom credit card debt is a normal way of life. In many cases, their parents are exactly like that.
They know nothing about personal finance planning and are obsessed with consumption, credit ratings, and possessions. For them, these things are an end in itself. Parents really have no right to complain that their kids feel entitled to expensive clothes and the latest cell phone models.
It seems that greed is far from a deadly sin today. Marketing experts have convinced us that greed is natural and necessary. Teens have been spending an average of $200 billion per year in the past several years. Concurrently, teens are performing more and more poorly in academics. It is official – greed is God.
Guilt is another major factor. We are spending too much time at work, both parents are pursuing careers, and almost 50 percent of marriages end in divorce. These factors drive us to overcompensate and dole out the cash. It is our way of saying we are sorry that we are never there, that we never have dinner as a family, that we don’t really know anything about our children’s lives. Against this backdrop, it is really no wonder that kids are financially irresponsible to such an extent. Giving them credit cards is no way to make up for not being there. What you should do is try to spend more time with your children.Continued on the next page