I Was Taught to Dissect a Frog But Not My Credit Report

I have a major concern for all of your children that are in high school and going to move on to college or university soon...
After entering the financial industry, the one reoccurring theme that is haunting to me is that so many people I meet, have no understanding of the importance of their credit score. They have not learned the importance of savings either. Many of E20-340 them have bad debt from racking up their credit cards with extracurricular activities. Having student loans is understandable and almost expected from most people. In fact, I would call that an investment and not debt.
But...this is not their fault. Parents may do the best they can to explain and teach but who listened to their parents when they were 17 or 18? Exactly! Instead, I would beg of secondary schools to start a "Personal Finance 101" course and make it mandatory for all students to graduate.
In this course, I would teach them the importance of your credit rating. What it consists of and how to keep it over the 700 mark if possible. They may not have a credit rating yet, but they will soon. Explain what paying your bill a couple days late (no big deal) does to hurt your score. "Oops I missed that payment, I will pay it next month", "I can put it on my visa because the minimum payment is peanuts". Do they understand that an 80 dollar pair of jeans could end up costing over 200 dollars if they are just making minimum payments? Does compound interest mean anything to the 20 something's?
Secondly, I would explain the concept of saving for a rainy day. Novel idea - I know. The students may roll their eyes at this chapter but once they get into the working world it will all make sense. What to do if you get laid off? What if something on your car breaks and costs an unexpected 1500 dollars? I know the answer, just put it on the visa and pay it later. Same with that trip to Mexico, Clothes for that trip, new shoes, groceries and the concert tickets... See where I'm going with this?
This course could also include some introduction into renting your first place, which is a high probability for most that are going away for post-secondary. What are your responsibilities and what are your rights as a tenant etc. How can you budget (another key word) to live away from home, attend school while still 312-50v7 ensuring that you eat and maybe have some left over for a night out. This is a great lesson to learn but most teenagers are thrown into this lifestyle and have no clue how to manage or balance their expenses. This is how the snowball begins to form.....
While you are on that chapter, might as well add in the First Time Home Buyers chapter. Do teenagers have any idea how much it costs to buy a home? Do they care at this point, maybe not but might as well get them used to the words 'down payment" and "credit check". This might save the shocked look on their faces when they come to me to get pre-approved for a mortgage or at least give them the idea that there is something after 'the party years" to look forward to. Your credit score is becoming more like your fingerprint. (It tells your life story). It's key to getting the best rate, loans that you need and maybe even that job you want will require a credit check.
While no one is perfect and everyone makes mistakes with their finances, being educated is still an important part of growing up. Part of one's education should include some important life skills EC1-350such as managing their finances and maintaining a good credit score for their futures. Being financially responsible is going to help them get into a home sooner and start to build "equity" sooner.
So next time, your child comes home from school and tells you he dissected a frog in class, ask him if he knows what his credit rating is? And if he puts his earphones and pulls out his phone to start texting, you will have the answer and understand what I am talking about. They may not care now but they will soon!