Parents have been advised to help their children learn how to use credit cards when they are in their late teens or early twenties, so as not to fall …
Parents have been advised to help their children learn how to use credit cards when they are in their late teens or early twenties, so as not to fall into credit card debt.
According to Una Farrel, a spokeswoman at the Consumer Credit Counselling Service, being given the chance to use plastic all of a sudden at age 18 can be overwhelming and so it is up to mums and dads to try and ensure their offspring are wise about understanding repayments and spending within their means.
She noted that some young people may find the temptation to rack up bills too hard to resist and they may not realise how much it is going to cost them until it is too late and so sensible education about finance is to be encouraged.
Ms Farrel also stated that another way parents can help their sons and daughters prepare for the future is by setting up a savings account for them so they can regularly make payments into it for specific purposes such as a gap year or deposit on a property.
She also commented that giving advice and being there to help children with their money is sometimes better than giving cash handouts because there are certain times in a young person’s life when they will need more aid in that regard.
“It’s not a matter of wanting to help, it’s really having to help,” the expert stated, adding that help with deposits on a house and university fees are the two important investments that mothers and fathers should reserve their cash for.
Ms Farrel’s comments follow research by the Clydesdale and Yorkshire Banks, which revealed 84 per cent of first-time buyers rely on financial support from their families.
Posted by Amy White