To Do Today… watch DollarDan’s video on debt with my children

Watch the food monster/debt monster video with your children.

Have a Q & A session afterwards and help them to understand different kinds of financial debt.

(Please note : as with most things in life there are different opinions – no different with debt.  I think there are two kinds of debt.  Good debt is borrowing money to pay for an asset.  Bad debt is borrowing money to pay for a liability.)

This is also a good opportunity to have the asset/liability conversation again with your children and make sure they understand the difference between a financial asset and a financial liability.  An asset brings money into your life.  A liability does not (and often takes money away from you, eg a loan to buy a posh fancy expensive car or the latest label shoes).