Smart Money Parenting What Kids Need to Know About Loans and Debts
Mar 3, 2023
29:34
Is debt good or bad? In today's episode, hosts Chad Willardson and Scott Donnell discuss loans and why parents must teach their kids about debt.
They share some practical tips for teaching kids about debt in a way that highlights its negative impacts as well as ways they can use it to secure their financial future.
- Is debt good or bad? Chad and Scott agree that debt can be both good and bad, depending on a person's circumstances and use of the money.
- Scott and Chad discuss the basics of borrowing and why parents must teach their kids about debt.
- Chad believes parents have a duty to teach their kids the consequences of bad debt from a young age.
- Scott explains how shrewd lenders make money out of people's ignorance.
- According to Scott, credit cards, although beneficial, have the potential to ruin a person's life if handled without care.
- Chad describes how bad debt not only has a financial burden but carries an emotional and mental burden as well.
- Chad highlights why kids need to be taught the real-life consequences of being in debt.
- For Scott, it doesn't make sense to borrow money to fund your lifestyle or keep up with the Joneses.
- Scott and Chad discuss the reasoning behind pro-debt versus anti-debt mindsets.
- If you have a credit card, the stats show you're automatically spending more without even thinking about it.
- Scott describes the joys of living debt-free and how it opens doors to more investment opportunities.
- Scott and Chad go through the practical games available on GravyStack that you can use to teach your kids about loans.
- Chad believes that families that take on banking and financial literacy at home are families whose kids enter the real world confident and capable of making smart financial decisions.
- Scott and Chad agree that you should only consider taking on debt if you're investing in financially appreciating assets.
- Chad explains the benefits of a good credit score and why you need to teach your kids about good and bad credit.
- Scott shares a plan for getting out of debt that actually works.
- Teach your kids that debt is not black and white. Sometimes it makes sense to take on debt, and sometimes it won't - but always have a second opinion before taking on debt.
Mentioned in This Episode:
Smart, Not Spoiled: The 7 Money Skills Kids Must Master Before Leaving the Nest by Chad Willardson
Scott Donnell on LinkedIn - https://www.linkedin.com/in/donnell-scott/
Chad Willardson on LinkedIn - https://www.linkedin.com/in/chadwillardson
Scott Donnell on Instagram - @imscottdonnell
Chad Willardson on Instagram - @chad.willardson
Scott Donnell on TikTok - @imscottdonnell