@Anonymous wrote:
Anybody of age will tell you that life is full of would'ves, could'ves and sometimes regrets.
I'm 49 years old and I remember when I was a punk kid, my parents, grandparents and others urged me to save money, collectively shouting, "Boy, that money is burning a hole in your pockets!"
And, like most teenagers, it went in one ear and out of the other.
Now, the roles have changed, it's me who's advising my children, neices and nephews on personal finance, credit and more.
But even with the best of efforts, it's seemingly becoming futile, as these kids are easily distratced today with smartphones and social media.
My parents told me, "Just let them live and learn, as we allowed you to live and learn."
But, I refuse to do so. We didn't have the resources they have today, when we were teenagers, so I demand that they take advantage of it, at least "my" children.
To make a long story short, I have three teenagers, who work and five nieces/nephews that work, but they blow money on nonsense and more.
My kids have all had student checking accounts for years, and I convinced my five neices and nephews to do the same,.
So, one Saturday morning, I had accounts opened for my nieces and nephews and then we had everyone, my kids included apply for a BofA Student credit card, and they were all approved.
To make a long story short, after talking to them for weeks or more about the importance of credit. Having each of them complete thorough research about credit, including the the credit building process, as well as read numerous message boards, including myFICO's message boards, they(my children, neices and nephews) continued to spend their hard-earned money on nonsense.
Even, worse, when they had the option to use their credit cards for said purchases, they use their BofA debit card instead?
Unless, I'm literally in the store with them, and forcing them to use their credit cards, they use debit or cash.
They are all responsible, so I didn't micro-manage them, as none of their checking accounts have been over-drawn or anything like that, nor have they went over their credit limits, not even close.
I'm speaking in retrospect to consistency, and because they all live either with me(my kids) or their parents, and have no responsibilities, like most teenagers they blow money, which is an oxymoron.
So, as of today, this is where we are:
They have all given "ME" their credit cards, including my neices and nephews. So, I collectively have eight student credit cards(my three children/five neices and nephews) in a small wallet my a safe in my house.
It's "I" who make eight separate small purchases per month, using each of their cards, to stave off inactivity, then I tell them to transfer ffunds from their checking accounts to cover the small monthly charges, before the due date of course. I usually purchase something small for my mom, their grandmother and they are good with it.
I know they trust thir father/uncle, but this is something "they" should be doing, but I was told, "I'd rather, you keep the cards and do it, since I'm occupied with school/work and I don't want temptation to get the best of me."
But, I see them with new clothes and shoes, and ask, how did you pay for that and collectively, I get, "My debit card."
I'm starting to pull out whatever hair, I have remaining!
You just spent $200 on an outfit, with your DEBIT CARD?
You should've used your credit card, then waited a day or two and simply transfered the money out of your checking and obtained those points!
I said, all that to ask this: What should I do?
I want them to continue to build credit, but they are not taking advantage of their credit, like they do debit and cash. Besides, out side of a couple of purchases, who still uses cash?
Any suggestions?
Teach them finance and saving instead of credit and (not) spending. When they see a tangible benefit from saving and delayed gratification, that positive will motivate them to increase the positive (more saving, more wealth growth). To use a cliche, it's better to lead with the carrot than it is with the stick.
If they pick up finance, the credit part will take care of itself.
