Teaching Teens About Debt

What you see above is a record of debt owed to me and payments made by my son. Earlier this year he wanted to make a large purchase that was outside of his current financial ability, and he approached me for credit.

We discussed it and I agreed that it was a worthwhile investment for him because the product relates to his income source and one of his dreams (future goals), and because it was a lesson on debt that I want him to internalize ASAP. You know, it's one thing for me to repeatedly say don't get into debt, and another, more powerful thing for him to experience it.

This isn't the first time he's experienced being indebted to me for a purchase, of course, and obviously owing me hasn't hit him hard enough just yet so I'm thankful the opportunity presented itself again while he's still under my charge. I was inspired to write this post today (6.29.2016) because he came to me and asked for money, and I happily replied, "I will not loan you anything else until your current debt is cleared." And let me tell ya ... he put in an hour's work to get back on track settling this debt because he doesn't want his bank to remain closed.

Folks have asked me about giving allowances and how I determine how much to pay him, and I'll share that with you in a future post later this month.

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