Debt and Younger Generations

Debt.

Parents have a huge influence on helping their teen become fiscally responsible. In fact, parents play a direct role in helping them be responsible, whether it is earning money through jobs, saving for college, car payments, or simply paying for their phone bill. Parents provide needed guidance for their student. In 2019, Sallie May reported “ 70% of college grads say they learned their financial skills from their parents.” That can be a scary thought for parents. Either way, parents play an important role in teaching their teens how to become a fiscally responsible adult.

One of the most important things students must be aware of is debt. Debt is such a large topic in culture. Therefore, being prepared by having a budget plan is wise for any young person.  The teenage years go by very fast and it will not be long before they are faced with major decisions on how they will spend their money.  For example, renting an apartment, student loans, car loans, school loans, are all things that a teenager will face at some point. Hopefully, by having some type of budget plan students will be prepared to face those critical decisions in life and avoid huge pitfalls of debt.

Experts often thinks that teaching them fiscal responsibility begins at home. In fact, Sallie Mae spokesperson, Rick Castellano, encourages parents to take a proactive role in showing their teen how to properly manage money. Once they understand how to use money properly, then they can grasp the concept of credit.  Dana Marineau, a financial experts states, ““You can’t expect your teen to make smart decisions with credit if they don’t understand how it works.”

God expects us to be responsible with our money. He desires that we make wise decisions and not get strangled with debt to where we cannot become givers. Once we are free from debt, we can give to His glory and for His kingdom.

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