Listen, I don’t want you to suffer in debt. But is that helping you? Is that teaching you? I don’t think so. I think they’re done. You get it to zero, and over the next couple of years, maybe even when you start making more money and your lifestyle, inflate yourself, you just bring it right up to the $12,500. That sounds like some form of enablement to me.Well, I mean, they said, ‘Whenever we pay it off, over time, you can pay us back that $4,000.’ I’m like, okay, cool.
However, generally, most adults don’t exactly discuss their financial decisions with their children and maintain a very different level of income. While it can be easy to mock someone for having no idea what a credit limit is, it might also be worth questioning why her parents gave her a credit card without actually explaining how it works.A lack of financial literacy isn’t just some buzzword or abstract concept, it can often be measured in real-world impacts.
One example of this, at least in the US, are the ever-discussed student loans. People who would never qualify for a “normal” loan end up straddled with debt that they pay off for decades to come. There is a segment of society that still blames the loan-takers, but realistically, if we understand that statistically many of them don’t quite understand what they are getting into, can we truly hold them responsible?I am a writer at Bored Panda.