Question: Rev Louder. My teenagers are starting to receive credit card offers. I’m really concerned that they will get trapped by easy credit. HELP, what can I do? Response: You have good reason to be concerned. Youth today, particularly college students, are one of the major targets for credit card companies. What can you do? I suggest you teach your older children (16 and older) how to handle credit cards by letting them have and use ONE card of their own (regular credit card or a pre-paid credit card) while they are still at home and under your supervision. I don’t think there is anything inherently wrong with credit cards. Data shows that it’s the way the cards are used that causes the problems. Now, what do i mean by “supervision”? Set firm rules and stick to them. For example: (1) Require your teens to have and use (and have your constantly review) monthly budgets. (2) Don’t let them charge anything that’s not on their budget. (3) ENSURE that they pay their credit card bill in full each month. (4) The FIRST month they can’t/don’t pay off their card bill in full, destroy the card, cancel the account, and don’t allow them to get another. (5) Let your teens know that these are the same rules you follow and why. It’s important to explain (no debate) these rules in advance. Then, stick to the rules. You will be helping your teens form habits that will serve them well when they are no longer under your roof or under your authority. Remember Proverbs 22:6–“Train up a child in the way he should go and when he is old he will not depart from it.” Like Larry Burkett used to say, “Establish fair rules, enforce them consistently, and be firm”
Category Archives: Money and Children
Should our children know about our finances?
Question: Dr. Louder. My husband and I are middle-class parents. We have a nice income, no debts, and money in the bank…praise the Lord! Here’s our question: How much should our children know about our finances? We are concerned we might create the false impression that we are rich. Response: This is truly a matter of personal opinion. Basically, I believe it’s best to be totally honest with your children…age appropriately honest–probably best in their teen years. If you are earning, giving, saving and spending according to God’s plan for your life (which appears to be the case) then why not show them your plan and help them develop and start to live on plans of their own? Help them develop positive expectations of what can happen if they learn and apply biblical financial wisdom. Honestly, wisdom is a blessing at any age. As it says in Proverbs 16:16, How much better to get wisdom that gold, to get insight rather than silver.
Money & Children: Allowances
Question: Should I give my child an allowance? Response: Proverbs 3:12 says, “…because the Lord disciplines those he loves, as a father the son he delights in.” I’ve found it’s not wise to teach your children to expect allowances. A better way is to teach them to work and earn money. The term “allowance” implies something is given rather than earned. If God doesn’t provide us with an allowance, and he doesn’t, then we probably shouldn’t provide allowances to our children. However, if you have a child who demonstrates discipline in handling money and you want to give him or her a gift from time to time, that seems to be to be just fine. The key is to be certain that you’re establishing long-term values in your children that will guide them when they are adults.