A financial education will enable our children to ask the right questions when considering taking out a personal loan one day.
Our children will have the ability to manage their personal debt and to make educated, informed financial decisions at the start of the loan process.
Part 3 of our series covers the following 5 questions:
11. Delayed Gratification – if our children can step back a bit and consider the decision they are about to make they may just realise that actually this is an emotional purchase which they don’t need and it could have a huge impact on their financial wellbeing down the line.
12. How does this purchase impact on my and/or my family’s financial life and future?
13. What will this item/experience cost me if I put it on my credit card and can’t pay it off in full at the end of the month?
14. Is this my asset or the bank/lender’s asset? Our children will understand what an asset is.
15. The sales talk is great but …. what are the facts?
Our children will know they have options and can negotiate to get the terms that suit them and not only the lender.