36. Debt:
Lack of money can be a real issue for
teens. They see other people with nice things and they want the same.
This can lead to them asking friends and family if they can borrow
money to buy the things they desire.
They may see that you borrow money to
make ends meet and so they feel that borrowing money is a good
solution.
It is important that you teach your
teen how to budget.
If they do want to buy something they
can save pocket money, get a part-time job or attend a boot-fair to
sell unwanted gifts to raise the necessary funds.
It may be that you are happy to lend
them money which they pay back from their pocket money over a period
of weeks. This can be a good solution but it is important that every
teenager realises that falling into excessive debt is not the
solution.
These days many companies offer Zero
Finance or low interest repayments. It can be very tempting to buy
things and worry about paying for it all later.
Some unscrupulous loan companies do
offer loans to teenagers with very high interest repayment rates.
If this happens to your teen it is
important that you listen to them and try not to judge them too
harshly. Assess the seriousness of the situation before helping your
teen to decide on the best course of action.
It is important that you don't totally
bale out your teen. If they have no consequence for their action they
may borrow and get into debt again.
A useful website to consult is provided
by the Money Advice Service.
Useful tips include asking your
teenager to stick to a budget in order to buy the family dinner once
a week. You give them the money and they make sure they buy enough food for everyone.
This can help them improve their money
awareness skills. This will help them later in life when they may
need to survive independently on a tight budget.
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