Our last lesson on teaching kids about money is a hard one for many adults so it is an important one for kids to learn when they are young. The lesson is that when you use a credit card and don’t pay your bills in full every month it is like a loan and you end up having to pay more then you spent.
The Bible talks about lenders and borrowers and it paints them in a pretty bleak light. It talks about how the borrower is forever in debt to the lender and how that is like being a slave.
Proverbs 22:7 The rich rules over the poor, and the borrower is the slave of the lender.
So our kids should learn that if they can’t pay for something out of pocket they should probably hold off buying it till they can (mortgages will obviously be a different conversation). Some topics to discuss to drive this point home are:
1) Look at credit card offers online and talk about the different interests they charge.
2) Using the Credit Card Repayment Calculator
at federalreserve.gov, see how long it could take
to repay a $1,000 credit card debt by making the
minimum monthly payments.
3) Talk about how having a credit card can be useful for things you need to buy online, but how you should have enough money in your account to pay off the bill right when it comes.
This concludes our 11-13 age money tips blog, but there are more money blogs to come so stay tuned.
If you like what you read, check out our children’s book, Hooked on the Book, on this website. It is great for parents and kids because it provides the Big Story of God’s miraculous plan for His children in all 66 books in the Bible including colorful illustrations, rhymes and a surprise on every page.