Interest has a big impact on your finances. Interest is a foreign concept to most children however. It can also be somewhat difficult to teach. If you want your child to grow up to make better decisions (earning interest rather than paying it) this is a concept that needs to be addressed. If you have debt, you can talk about how you regret it, and show them your credit card statement. Since the Credit CARD Act was passed, creditors have to put how much you will pay back at the end. Show your child how much more you are paying back, thanks to credit card interest. It can be a powerful lesson, and teach your child to learn from your mistakes. Even if you aren’t interested in revealing that much about your finances to your children, you can find other ways to get the point across. See you next week. Finwiz
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