Jason Monk

JM

Student

Denver

Interests:

  • Posted 2 Months ago
  • 384

What Teenagers Need to Know about Borrowing Money

View Original Photo

There has been a lot of conversation about the current high cost of college and making college more affordable, or even free, for students. But the truth is that many students will need to take out loans to be able to afford a college education. In addition to the loans they take out, many students are often surprised to find themselves offered credit cards. For most teenagers, college is the first time they have any formal experience with banks, borrowing, credit cards, and loans. This experiment can frequently go terribly wrong as unprepared teenagers experiencing both personal and financial freedom for the first time are met with credit card companies and others eager to exploit the students’ lack of information.

For most teenagers, college is the first time they have any formal experience with banks, borrowing, credit cards, and loans. This experiment can frequently go terribly wrong as unprepared teenagers experiencing both personal and financial freedom for the first time are met with credit card companies and others eager to exploit the students’ lack of information.

 

Just like learning good study and writing habits, teaching your high school students how to handle money and credit is an important part of preparing them for college. Starting this lesson plan younger than high school can only benefit students.

 

Financial education covering everything from how to write a check to how to figure compound interest used to be a standard part of the curriculum, but not all schools offer these subjects. The change is partly because of time constraints and partly because of the ever-changing nature of financial practices. It’s difficult even for adults to keep up with the changing nature of banking, but it’s important to try and do so.

 

For teachers who want to include some financial literacy for their students, there are several sites with lesson plans about budgeting and saving. The Mint offers several resources for teaching the subject mathematically. For those interested in creating an integrated approach to the subject, having students read articles on sites such as The Penny Hoarder and Wise Bread may help them see how budgeting can be important in everyday life, as well as when working with big-ticket items such as a college education. The ins and outs of credits, and credit reports remain elusive to most teenagers, and many adults, but are another subject worth covering. Teenagers can easily develop bad credit early on and not realize how expensive that mistake can be.

 

In addition to making sure that your students understand their financial responsibilities, and the potential pitfalls of credit, it’s important that they understand that they have certain rights as a consumer and as a borrower. The Fair Debt Collection Practices Act (FDCPA) is one little understood area of consumer rights. Many people don’t know that even if they do fall behind in loan or other payments, they are still entitled to protection from harassing behavior. Because people are often embarrassed by their debt, they don’t always fully protect themselves from unfair practices.

 

Junior High and High School curriculums are crowded these days, and more and more specialized knowledge is required for certain fields. However, all students, regardless of their future plans need to understand the way finances work. Adding information about credit, debt, and budgeting into your curriculum is a great way to ensure that you’re giving your students information they’ll be able to use in the “real world.”

Post a Comment

1000 Characters Remaining

Back To Top