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A Penny Saved is a Penny Earned

by Kimberly Blaker

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Introduction and Excerpt:


A 2000 review by Nellie Mae, a federal student loan program, found that 78% of its undergraduate applicants, between the ages of 18 and 25, have at least one credit card. The average balance these students carried was $2,748.
 

Tips your kids can bank on

Don’t loan your child money every time he wants it. But do offer occasional opportunities for him to experience both the costs of borrowing (interest) and repaying the loan.

Teach your child how to set financial goals. By the teen years, these may include saving for automobile expenses, college, and other long-range plans. And don’t overlook the importance of short-term goals, which offer your youngster a feeling of accomplishment and a boost in self-esteem.

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