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Conversation Starters for Managing Your Money
- What is debt?
- What is good debt?
- What is bad debt?
- What is income?
- What are some ways you can earn income?
- Is money given as gifts a form of income? Why or why not?
- What happens if you have more expenses than you have income?
- What is a credit score? Why is it such an important number?
Conversation Tips for Managing Your Money
- Explain that debt occurs when your expenses (the money you spend) exceed your income
(the money you earn). Use the example of spending too much on credit cards to satisfy
endless wants, especially if they charge up bills and are unable to pay them off.
- Share that debt is stressful and expensive, and that careful planning and tracking
will help them avoid the accumulation of debt and fees, such as overdraft and late
fees.
- Although no debt is “good,” explain to your kids there are some forms
of debt that people incur that can be considered good because it helps them provide
important basic needs, such as shelter and transportation.
- Talk to your kids about your own “good” debt and how you
budget to pay these bills each month.
- Talk about credit cards and how they can be a good financial tool only when used
carefully and wisely.
- Discuss a form of bad debt, such as excessive credit card debt and loans to satisfy
endless wants.
- Find an article in the newspaper or online about how someone did not manage their
money well. Discuss the article with your family:
- What hardship did that person go through?
- What lessons did that person learn?
- Talk with your kids about the
importance of saving for the things they want instead of going into
debt. Be sure to talk about how rewarding it will feel to
achieve their goals!
- Talk about credit scores. Share that their credit score is a number that tells companies
~ like banks, credit unions, car dealers, credit card companies, etc. ~ how well
they manage their money. The higher your score, the better. Explain that the higher
their score, the better deal they’ll get when they try to buy a car, a house,
or get a loan.
- Keep track of how many credit card offers you (or they) receive in the mail for
one, two, or three months. Show these to your kids so that they can see how tempting
it can be. Use these offers to learn more about the different fees and interest
rates companies charge. Keep a chart of your results. If you’re in the market
for a new card, use your chart to make a well-informed decision (be sure to shred
all the other offers).
- Make a pledge to read at least one credit-related article in the Wall Street Journal
each month. Report to your family and friends what you’ve learned.
Additional Resources:
Financial Literacy
National Endowment for Financial Education
JumpStart Coalition for Personal
Financial Literacy
National Association of Federal Credit Unions
Moonjar
National Credit Union Administration
Credit Scores and Credit Usage
www.annualcreditreport.com
www.myFICO.com
Investor Education
National Association of Securities Dealers
Saving for College and Financial Aid
www.finaid.org
Savings Bond Interest Rates
www.treasurydirect.gov
Financial Calculators
TopLine Investment
Services
Books
The Millionaire Next Door
By Thomas Stanley and William Danko
Practical information on how other millionaires made their money.
The Richest Man in Babylon
By George S. Clason
Common sense ideas on the concept of paying yourself first.
A Chair for my Mother
By Vera B. Williams
Family picture book that shares a story about saving.
Content on this page may contain information from, and is used with permission by,
the National Endowment for Financial Education, the National Association of Federal
Credit Unions, Moonjar, and the JumpStart Coalition for Personal Financial Literacy.
Links to additional resources are provided for information purposes only and are
not endorsed by TopLine Federal Credit Union.
© 2007 TopLine Federal Credit Union. All rights reserved.
® Registered trademark of TopLine Federal Credit Union
Servicemark of TopLine Federal Credit Union.
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