Moving Out

[nissangirl74]

As some of you know, we had two kids graduate from high school this year. Dar and Katrina are both planning on moving out by the end of the year. They're asking a lot of questions on how to be prepared for living on their own. My parents didn't do much to prepare me for living on my own, at all. I didn't know how to cook, I didn't know how to do laundry, balance a check book (manage money AT ALL for that matter) change a tire, nothing. So I've come up with a pretty long list of stuff they need to know before walking out into the great big world of independence. I was wondering if you guys would chip in and add to my list. Anything that you've learned out on your own the hard way, things you wish your parents had told you, or any other lessons on life would be greatly appreciated.

Thanks!

[Rogue One]

balance a check book (manage money AT ALL for that matter)

Rainy Day / Emergency Fund. Rule of thumb is enough cash on hand to cover all basic expenses (food, utilities, rent, gas) for three months.

Want versus Need. Learn to control your desires, or they'll control you.

[frapjap]

Want vs. need is an excellent tip.

Things I wish I was taught, but ended up learning in the real world:

Teaching them not to stress or fear the unknown. Instead, learn about it, research it, talk about it with folks who may know, and lastly, don't be afraid to jump in feet first. I could count on two hands how many times I moved somewhere not knowing anyone or even having a job, but it'll as long as you remain optimistic, it'll work out.

Don't move in with the first guy/girl who says I love you.

Teach them to clean properly. (Too many of my friends still fail miserably at this- guys and gals alike. Some even have small children now) Though, I do credit my mother with this one.

Get a job in the service industry, or construction even if for a couple of months. It'll give them ambition to get the hell out of there. It'll get them thinking about longer term goals down the road.

Show them how to set up a generic budget sheet on Excel.

Teach them the real cost of borrowing money. The new car ad circulars are good for this- $14,997 at 2.9% isn't 249.95/mo, its $322.44/mo which, with a relatively slim budget may be the difference between having electricity or not.

Money saving techniques- coupons, eating in vs. eating out, changing your own oil vs. paying a shoddy shop, how to look up ISBN's for used books on Amazon instead of buying new in college, planning on those books coming in after your class has started by showing the teacher the receipt and saying "its on the way," how to extract a virus from your computer, how to recover lost documents on your computer.

I'm sure there is plenty more I can come up with over the course of the day...

[Bubba1]

Good stuff, Ray. Learning to properly budget and living within it is probably the biggest hurdle they'll face, which is something not normally taught in school. Add to that their long term reliance on the national bank and hotel of Mom/Dad, and it could easy be a huge challenge. Keep in mind, kids nowadays are more focused on technology and their costs than we were when we were their age, many of which didn't even exist (like smart phones, internet, laptops, Netflix, cable, iTunes, ipods, ipads, kindles, xbox, etc etc.) The sad reality is many may have a difficult time emotionally giving up some of those things until they can afford them.

After budgeting and money management, Bex, you hit on several of the basics. The more basic home skills they know, (which does not include advanced smart phone/computer skills which they've undoubtedly already mastered), the easier the transition to independence. For example, learning cooking a few cheap basic meals, cleaning the dishes, food shopping, what gets stored warm or cold, washing one's clothing and folding it properly, changing sheets/making a bed properly, cleaning/vacuuming, perhaps sewing a button, basic first aid, how to food shop efficiently. I would think car ownership stuff (the ability to change one's oil or doing basic repairs) is not really that that big a priority, though it's probably one of the first things a car guy will recommend. But at the very least they should know how to check/add fluids, air pressure, keep track of service intervals, recognize what the idiot lights are if they turn on, and know how to change a flat tire.

We're dealing with an empty nest now. I think the kids asking you lotsa questions is a good first step, but the second step, getting them to learn to do chores/practicing the skills themselves is more important and something that you might need to do some prodding.

[Jesda]

^^^^ I second meal planning. Plus, if you develop your cooking skills you can be amazed by how much better you can eat.

Also, what Ray said about the real cost of borrowing money. That's a big one.



In your teens and 20s you may be inclined to own, consume, and possess everything in sight. By 30 you'll stop caring about "stuff." Don't overspend on stuff. Don't be a slave to consumerism.

Play outside. Often. Squeeze in an hour a day. It's free, healthy, good for your mental health, and saves you money because you aren't buying "stuff" out of boredom. Nature is an amazing gift.

Think about the impact you have on the world, and I'm not talking about your carbon footprint. Everything you say and do generally affects other people so tread lightly. This isn't about what people think of you. It's about how you feel about yourself when you put your head on your pillow at the end of the day.

[PapaSmurf2k3]

Katrina should start by learning how to drive and getting her license (and if she has it, she should actually use it).

Also- get/keep jobs. It keeps you out of trouble, and out of debt.

[krazy skwerelette]

I second all the financial advice given. At 26 I'm still trying to build a savings and pay off debt.

Also something I learned in college is be sure to make the right friends. Yes some friends are great to party with but it's more important to make those life long friends that you can trust and will be there no matter what.

[Bubba1]

Also something I learned in college is be sure to make the right friends. Yes some friends are great to party with but it's more important to make those life long friends that you can trust and will be there no matter what.

Very true....

[DJ_B_Easy]

always plan your meals in advance

...and DO NOT go grocery shopping when hungry.

[Kompresshun]

always plan your meals in advance

...and DO NOT go grocery shopping when hungry.

Ditto. Probably the biggest mistake my wife and I make on a regular basis. You always end up buying way more because you're thinking about how good everything looks. Plus you're hungry, so you're rushing to get done shopping so you can eat.

I was terrible with money when I was younger, but I didn't really have many people to guide me. I made a really good salary at that time too though, so I didn't really care because I always had money. The thing that hurt me was when I had to take a pay cut a year or so later and I had not saved or planned ahead at all. It's easy to get off track really quick when you have no safety net to fall back on and dig yourself in debt. It took me a few years to get myself back out of debt, but when I finally did I never let it happen again. It sucks. I don't recommend it. Ever.

We are by no means perfect with our money though and I never intend to be, because everyone is going to have things they want to waste money on. The key is planning ahead for those expenses so they don't dig into your normal budget and make an impact on the important things that have to be paid for. Usually my wife and I have a "safe" number we set that we can buy stuff and not have to ask each other about it first. If it exceeds the safe number, then we discuss it and decide if we should buy it, or how we plan to pay for it.

For myself, when I want something that exceeds that number I either try to do some side work, work overtime, or sell something that I may not be using so it doesn't effect any day to day expenses. Kristen can make far more than I can working overtime, but I would never ask her to do so to pay for my hobbies.

I know it's different when you're single, but it's still good to have a limit set for yourself too even if you are. It keeps you in check and helps keep you focused on the important things, rather than buying those things you don't need right now and waiting until it makes sense to buy them.

[MinisterofDOOM]

Use cash, especially as you're first learning your budget.

Cards and paypal and crap can be convenient, but when you've got cash in your wallet it's really easy to see and feel every dollar you spend. Makes it very easy to build that feel of what's "too much money" on your budget and what's reasonable.

When I first moved out, I had a problem with my debit card stacking up "holds" from certain vendors that would cause me to overdraft. It's not supposed to work that way, but my bank was stupid and it kept happening. It wouldn't have been a problem if I had some savings cushion, but being a broke-a** college student every dollar mattered. One day, I walked into the bank, took my money, closed my account, and drove over to a credit union where I dumped it into a savings account (no checking).
From then on, every friday after getting paid I'd go to the credit union and take a set amount of cash out. That was my weekly budget. As I'd progress through the week I'd start to feel the squeeze more and more. For a while, weekends (right after payday) were spent livin' large while the end of the week meant eating ramen. But after a while I learned to balance it out, and I got a great feel for how far those paper bills in my wallet would get me. Eventually it turned into a savings cushion since I never took out as much as I earned that week. That ended up working out well, because about 10 months into my first 13 month lease, my roommate lost his job. He had trouble finding another one and I paid all the bills for all 3 months until the lease was up--something I could NEVER have managed on my old debit-card spending habits.

Now, I've moved to a state with only a couple of branches of my credit union; the nearest is 35 minutes away. I use my debit card a lot and, even though I've learned to budget properly, I still feel my spending habits slipping at times, because I've got all my funds in my pocket instead of just a bit at a time.


I also absolutely agree with meal planning and cooking. And "eating in" doesn't mean ramen. Food can either be one of your biggest expenses, or just another bill. Always have ingredients to make something quick and easy on hand, or you'll be tempted to order out or get fast food.
Pro-tip: Fried food is both extremely easy to cook and delicious. If you've got some cooking oil, mushrooms, cheese, eggs, tomatoes and bread or tortillas on hand at all times, you can basically make a no-effort meal for any time of day. Soup is a good standby, but canned soup tastes terrible (salt substitutes argh!) and $2/can is not as cheap as it sounds. Still, a couple dozen cans of soup in the pantry means you'll never be stuck having to run to the store for food while hungry.
Get a propane grill. Another delicious-but-easy cooking trick. Brats, zucchini, and millions of other delicious things are basically effortless on a grill, and propane's still pretty cheap these days.

Don't worry too much about furniture at first. I had a bed and a dresser when I moved out, and the bed was just a frame from the D.I. (like Goodwill). That was it. But somehow I accrued furniture from neighbors leaving the aparment complex who didn't want to haul that huge recliner couch down the stairs, or from family, or friends, or I don't even really remember where the Hell half of it came from. I think I've paid for a computer desk and a TV stand and that's it. Everything else was acquired by random chance, and I now have so much furniture that a third of it is in storage rather than crowding my little 1-bedroom apartment.
I have this magnificently horrendous sculpted-upholstered green armchair from the '70s that sits so low it could fit in a McLaren F1, and it's my favorite thing ever. I put a black sheet over it so people don't go blind just from being in my living room. I definitely didn't buy it, but somehow I have it.

Find a place with washer and dryer hookups (if not included washer and dryer). It will save you time and money. I bought mine one at a time, so, for a while, I would wash my clothes at home and then cart them over to the laundromat for drying. Ironically, my new place has an included stacked combo unit, and no room for my full size units, so I put mine in storage until I move again. Laundromats are EXPENSIVE and you end up having to do laundry in huge batches rather than as you need it.

[AZhitman]

ALL brilliant recommendations... Keep 'em coming, this is going to be required reading for the two chuckleheads.

[MaximA32]

As someone who has moved out and moved back home a couple times, make sure they know who they're going to be living with. Roommates are great and living with friends MIGHT sound awesome at first, sometimes (usually) that's not the case. Make sure all the ground rules are laid out WELL in advance and if need be, write them up and all parties sign them. This is especially important when splitting up the bills. Who owes what and who pays what is going to be the biggest argument you'll get into with a roommate.

[PapaSmurf2k3]

Find a place with washer and dryer hookups (if not included washer and dryer). It will save you time and money. I bought mine one at a time, so, for a while, I would wash my clothes at home and then cart them over to the laundromat for drying.

Or just buy a drying rack and hang your s*** up so it dries for free!

[Bubba1]

Find a place with washer and dryer hookups (if not included washer and dryer). It will save you time and money. I bought mine one at a time, so, for a while, I would wash my clothes at home and then cart them over to the laundromat for drying.

Or just buy a drying rack and hang your s*** up so it dries for free!

It can also be cheap and fun furnishing your first apartment/home, assuming it's not already furnished. For example, in my case since neither of our families had much stuff to offer, My wife and I hit a lot of auctions, estate sales, yard sales, and flea markets when getting our 1st place furnished. For example, my wife found a huge green painted side board for $.25 (as in a quarter) at a garage sale. We borrowed a friend's pickup to get it home, stripped and refinished it, turned out to be solid mission oak and it came out gorgeous. We sill have it in our bar decades later.

When starting out, just don't be in a rush to get everything. There's a lot of stuff to get, so planning/prioritizing is key. Help your kids develop a list of stuff they need to get started and rank them in importance. Things like glassware, dishes, silverware, basic pots,pans, cleaning supplies, toilet paper, sheets, blanket, pillows, perhaps a microwave, toaster oven, a few hangers, etc. Once you have the list going, things can be crossed off as you acquire them or added if necessary. And if you know your roommate if you get one, dividing that list could make things even cheaper/easier for both of you.

[DJ_B_Easy]

I agree with everyone regarding credit card debt and debt in general, but it's also important to establish some credit and maintain a solid credit score.
My first credit card was used for gas and gas only. I would pay it off monthly and although I didn't really rack up the score doing that it still helped.
There are a ton of cards out there now that have cash back incentives and 0% introductory rates. I would suggest looking into them. I recently acquired a Chase card that has 18 months at 0% interest, 1% cash back on all purchases, and 5% rotating at different locations each quarter. They have given me $180.00 already and I will have the card paid off in 2 weeks.

[nissangirl74]

Things like glassware, dishes, silverware, basic pots,pans, cleaning supplies, toilet paper, sheets, blanket, pillows, perhaps a microwave, toaster oven, a few hangers, etc. Once you have the list going, things can be crossed off as you acquire them or added if necessary. And if you know your roommate if you get one, dividing that list could make things even cheaper/easier for both of you.

Katrina has her first set of dishes. She won them in a contest. She has also already started a list. I'll make sure all of your suggestions are on there. I told them to hit up Goodwill about once a week, browse Craigslist, and make a trip to the 99 cent store, even if it was just to browse.

Something else I'm trying to instill in them is the importance of NOT eating out. When Dar very first got his job, and debit card, he blew through a s***-ton of money just eating out. I went through his statement with him and he literally spent over half of his first month's pay on food. I asked him, "OK, what ELSE could you have done with $175?" That's sobered him up a bit.

[Jesda]

Also, go home for free meals as often as you can.

I still live within walking/bicycling distance of my mom (5 miles). I'll occasionally invite myself over for dinner and bring home large containers of leftovers.



As for dishware, I still use pieces from a set my parents bought in the 80s:

[Bubba1]

As for dishware, I still use pieces from a set my parents bought in the 80s:

My very first set of dishes was also free and coincidently looked exacty like the stuff from my school's cafeteria.

[BusyBadger]

Jes, I had those same dishes growing up!

A lot of what I might have posted has already been said but I will add...resist the urge to get a pet.

I'm sure there will be times when the house/apartment will feel empty and alone and you might want a dog or cat to keep keep you company...resist. It's a huge added expense when you're starting out in food costs alone, a single emergency trip to the vet can be financially crippling if you're not prepared for it (there's a reason pet insurance is available). It also impacts your time and could make potential working hours and job scheduling difficult. There's also housing, pets aren't accepted everywhere and will certainly limit your available choices.
Animal shelters are overrun with animals that someone thought they wanted only to discover they weren't ready for the responsibility, when you're just starting on your own it's enough to figure out how take care of yourself. Don't add to the problem.

Last, they give you a reason to stay home when in your free time (the limited a amount you have) needs to be spent anywhere but the place where you lay your head.

[AZhitman]

^ GREAT point.

I always figured it this way: If I had time to chill in my apartment, I had time to go get a third job.

[frapjap]

Also, go home for free meals as often as you can.

I still live within walking/bicycling distance of my mom (5 miles). I'll occasionally invite myself over for dinner and bring home large containers of leftovers.



As for dishware, I still use pieces from a set my parents bought in the 80s:

Ha! We had those too! Pretty stout considering my parents had three boys. I think we sold the set in a garage sale a few years ago. I always get a little nostalgic when I see one of the pieces at a thrift store.

I wonder what they originally retailed for, I can't imagine they were expensive.

[Z Car Barbie]

LOL at those dishes! I actually remember that design from way back. Ok, I totally agree with the advice already provided, and would just like to add:

Socialization: Volunteering your time (even just two hours a month) can not only help improve your communication skills, but also provide a new perspective on life, improve the quality of life of the recipient (whether it’s a child, an elder, an animal, or even the government), it can help you learn more about other people and society in general, it’ll look great on a resume, it can help break the ice at a job interview, and it can sometimes even get a foot in the door to that interview, or that college you want to attend.

Empathy: Read and interpret other people’s feelings, emotions, and body language with an open mind (try to put yourself in that person's shoes to better understand him or her). Don’t be afraid to compliment or praise someone – everyone needs that every once in a while. Be a good listener. Sometimes if you say nothing and only listen, you can make someone’s day just by being his or her sounding board. This can be very helpful if you have roommates or a difficult co-worker. Try not to be quick to judge others; give that person the benefit of the doubt. Also, if you’re trying to reduce or dispute a bill, remember that patience, calmness, and kindness can work wonders.

Self-Protection: I don't mean to scare you, but no one is immune to crime or violence. Be aware of your surroundings. Don’t walk, go shopping, or get gasoline alone at night, watch your rear view mirrors when driving for anyone following you (if so, drive to the nearest police station), and never go to an outdoor ATM after dark unless you have a police officer with you. Keep your doors locked (car and home). Introduce yourself to your neighbors, but be careful about providing TMI. Subscribe to your local sex offender registry notifications to stay current on offenders living near you. Carrying mace wouldn’t hurt either. If you have roommates, keep your eyes and ears open to any potential illegal activity; if they get busted, you’re likely to go down with them. If you have prescription drugs, hide them in a safe place, along with any other valuables. The best way to avoid crime is to prevent it. Lastly, don’t be gullible and never allow anyone to abuse you (whether mentally or physically). The 1-strike rule should apply on this issue. If you wait for 3 strikes, it could be too late.

Pets: Animals can definitely be costly (food, treats, toys, accessories, heartworm medication, flea prevention, grooming, and possible health-related issues). However, a Beta or goldfish is very inexpensive to maintain, that is, if you’re willing to keep its bowl clean on a regular basis. Anyway, it’s just an idea that could help bring a light additional responsibility with a wonderful purpose and joy to your life without breaking the piggy bank.

[szh]

How to achieve financial independence is the best thing you can teach your kids!

I have posted this before, but here is how I have been buying brand-new cars for decades now ... without a single car loan car since mid-1980's!

When you buy your first car, buy ultra, ultra cheap! Don't have the most expensive and fancy car from the get-go - that is the typical mistake most kids out of college make.

When I graduated from college, in Feb of 1979, my first car was a cheap Ford Fiesta - new at about $5k. I put down $95, got a loan and paid a monthly car payment. I also put a similar amount of money aside each month (scrimping on some other things, of course, but never going so cheap that it hurt in any way) into a bank account, and that is the crux of the method: you gotta save for the big purchases in the future.

So, in 1980, I bought a Mazda RX-7 brand-new for about $13k, as I recall (because the damn Fiesta was jinxed, but that it is another story! ). I had saved up enough to put down about 20% on it. Yes, I had a car loan on that RX-7, but I kept putting additional money aside. And, yes, engineering salaries also improved over time, so that helped.

Keep doing this approach, keep cars as long as you can, keep putting money aside, and things just keep getting better over time. So, in 1986, I bought a brand-new Nissan 300ZX Turbo - put a much larger percentage down on it. This was the last car for which I had a bank loan, but I kept putting money aside as if I had an extra car loan on it.

This allowed me to get, in 1991, an Infiniti Q45 - a perfectly fine luxury and high-power vehicle! No car loan at all. But I kept putting money aside as if I had a loan! And, yes, salaries and stock options from a job also helped with the purchase. But that comes in time ...

And so on.

Now, my car is a 2003 Infiniti M45 - bought brand-new in Aug 2003 and it never had a loan - I plan to keep driving it for many more years. My wife bought her 1997 Acura 2.2CL in Aug of 1996 ... no loan. We keep putting money aside as much as we can for expensive purchases. So, in Jan of 2012 - after fourteen years of ownership of the 2.2CL - when she went to get a car to replace her Acura, we got her a 2011 Acura TSX ... brand-new ... and no car loan.

Since 1989 or so, after paying off my college loans, the only debt I have had has been my house mortgage. Using the same approach to put money aside, I have owned three houses - steadily increasing size and location since my first one in 1988. Now, my wife, son and I live in a perfectly fine house four-bed, three-bath ... a bit under 2500 sq feet in San Jose, CA - that we bought new in 1999, putting about 35% down, as I recall.

And, after a couple of re-finances (every time interest dropped), our equity in the house is close to 75% to 80% and the monthly mortgage is less than a $1k per month - about three less than what the same house across the street is rented for per month! In another 10 years, we will have paid it off.

My point here is that good financial outcome in the long run is simple to achieve if you have a mind-set that you can live comfortably without going overboard spending whenever some dollars accumulate in the bank.

When I am gone, my son will, I hope, have good financial sense to do the same. Yes, it will be tougher for him, since the world has changed a lot since my time. The same is true for your kids. But, if you can teach them that life can be comfortable and perfectly fine without spending every last cent that they earn all the time, and that if they can save wisely, it will serve them well in the long run.

Z

[nissangirl74]

Katrina should start by learning how to drive and getting her license (and if she has it, she should actually use it).

Also- get/keep jobs. It keeps you out of trouble, and out of debt.

She is driving. She got her permit. She's a decent driver for no more experience than she has had. Daily trips to her boyfriend's house, the new house, and her workplace are starting to pay off.

She has a job at Blimpie's. It is a starter job but she's making over $8 / hour (over the minimum wage) and she's getting close to 30 hours a week which is pretty spectacular around her for part-time. She likes her co-workers and her boss really likes her. She has a good work ethic which seems to be serving her well.

She is also still volunteering. She's been doing that since she was a sophomore and I'm glad she is sticking with it. I've always stressed the need to give back in some form or fashion and I'm glad that she's listening.

She's also been browsing Craigslist for deals on stuff she will need, as well as Goodwill and the 99 cent store. I'm REALLY trying to stress the importance of not paying more for something if you don't have to. Even if you can afford it. She has a roommate lined up (maybe two) who has an interview this week and things are really starting to fall into place.

Dar is pretty much self-sufficient and has been for a while. He's just biding his time until he turns 18 so he can go out and find him a "grown-up" job. He wants to get a job at the state hospital, or working for the state in some capacity. If he can land that, he'll be doing real well. the pay is better and the benefits are pretty spectacular. He's also looking into taking some classes this Fall and getting his pilot's license. He's busy but that's awesome in my opinion. Idle hands . minds wander into bad situations.

[Ferrisfan]

Get a gasoline credit card, and ONLY BUY GAS WITH IT!. Pay it off in full every month. This starts you down the road of a good credit score which is important later (but soon) in life. Get parents to cosign on a $500 limit if you don't otherwise qualify.

Stash money away for retirement as soon as you can. If your job offers some kind of match, figure out a way to contribute enough to get the full match. If your job doesn't offer anything, then start a Roth IRA. If you're 18, and can swing even $20/mo. that will be huge by the time your retire ($85k if you figure it at 7%). It also serves as a great emergency fund later in life (kid needs surgery type of emergency, not need new tires kind of emergency).

[nissangirl74]

I can not in good conscience advise my child to get a credit card. They are too tempting. You might TELL them to only charge gas but you'll find that people will put $5 in the gas tank and go in the store and spend $15 on junk food. Not wanting them to walk down that road.

[szh]

I can not in good conscience advise my child to get a credit card. They are too tempting. You might TELL them to only charge gas but you'll find that people will put $5 in the gas tank and go in the store and spend $15 on junk food. Not wanting them to walk down that road.

Hmmm ... it is not that easy, unfortunately - particularly after college is done perhaps. Credit cards, if used wisely (and I understand that this is your concern), are pretty much essential for normal stuff.

Years ago, when I first started work out of college and flew to California for a training class a few weeks after I started, I had zero credit cards.

I had my new employer give me a cash advance for the trip and carried almost a $1000 cash with me, but the car rental company (Hertz) would not take a cash deposit - they insisted on wanting to see a credit card before renting me a car!

It took me a lot of convincing, talking to the manager, etc., along with a late Sunday call to the travel agency that had arranged the trip and rental, to get them to agree to rent me a car. Without it, I would have been quite stuck.

The hotel was easier - cash deposit worked there, since the total charge was going to be less than the cost of the week long stay.

FWIW, my wife and I gave my son a debit card - tied to his bank account - at the age of 14 a few years ago, to get him to learn how to use the card wisely. He has not disappointed and is quite careful with his money and spending.

When the time comes for him to have a card - for emergencies, whatever - when in college, I am confident, he will do the right thing.

Z

[Ferrisfan]

I can not in good conscience advise my child to get a credit card. They are too tempting. You might TELL them to only charge gas but you'll find that people will put $5 in the gas tank and go in the store and spend $15 on junk food. Not wanting them to walk down that road.

Well, you know your kids and you don't know me...so you know what is best.

I truly believe that knowing how to save and how to responsibly use credit are 2 crucial life skills. A good credit score helps you get a job (many employers do a credit history as part of your background check), get an apartment, and later in life save you thousands of dollars by qualifying for lower interest rates on borrowing (i.e. mortgage).

Once you are disciplined enough to pay off CC bills every month by budgeting how much you put on them, any rewards program benefits from using the card are "free money"...something that you get solely at the cost of disciplined card payments.

Credit cards also offer better fraud protections than debit cards.

Best wishes to your kids though! Just the fact that they are asking you to teach them shows that they have good heads on their shoulders!

[nissangirl74]

FWIW, my wife and I gave my son a debit card - tied to his bank account - at the age of 14 a few years ago, to get him to learn how to use the card wisely. He has not disappointed and is quite careful with his money and spending.

They both have checking accounts with debit cards, have had for years. I like the debit cards because they can't spend more than they have. Credit cards, on the other hand, will let you spend all the way up to your limit, regardless if they can pay it off at the end of the month.

The fact that my parents did not teach me ANYTHING about money makes me paranoid. I got into debt when I was younger and it took a helluva long time and lots of overtime to pay it all down. I want our kids to avoid that.