Comments on: Use a Ledger to Teach Kids Money Management Skills http://lenpenzo.com/blog/id506-use-a-ledger-to-teach-kids-money-management-skills.html The off-beat personal finance blog for responsible people Fri, 30 Jul 2010 18:27:26 +0000 http://wordpress.org/?v=2.8.4 hourly 1 By: Len Penzo http://lenpenzo.com/blog/id506-use-a-ledger-to-teach-kids-money-management-skills.html/comment-page-1#comment-8221 Len Penzo Fri, 11 Jun 2010 14:49:46 +0000 http://lenpenzo.com/blog/?p=506#comment-8221 I'm not sure if it is possible to get a credit card with a limit of $50 or so, but it would be interesting to find out! I'll look into it. I’m not sure if it is possible to get a credit card with a limit of $50 or so, but it would be interesting to find out! I’ll look into it.

]]> By: Calculate Credit Card Interest http://lenpenzo.com/blog/id506-use-a-ledger-to-teach-kids-money-management-skills.html/comment-page-1#comment-7933 Calculate Credit Card Interest Sun, 06 Jun 2010 20:47:21 +0000 http://lenpenzo.com/blog/?p=506#comment-7933 Thanks for your feedback, Len! I agree, using a prepaid card does have its drawbacks and definitely not an end all solution to figuring out how we can teach kids about money management. I'm all for having kids learning from their own mistakes as well. Is it possible to get a credit card with a limit of say from $50 - $100? Thanks for your feedback, Len! I agree, using a prepaid card does have its drawbacks and definitely not an end all solution to figuring out how we can teach kids about money management. I’m all for having kids learning from their own mistakes as well. Is it possible to get a credit card with a limit of say from $50 – $100?

]]> By: Len Penzo http://lenpenzo.com/blog/id506-use-a-ledger-to-teach-kids-money-management-skills.html/comment-page-1#comment-7895 Len Penzo Sat, 05 Jun 2010 23:31:22 +0000 http://lenpenzo.com/blog/?p=506#comment-7895 The prepaid credit card idea is intriguing. I like the idea of the kids being able to go to a store, buy what they want and then swipe the card. On the flip side, what I DON'T like about it is the fact that the card is, well, prepaid. There are no real penalties for spending more than they can afford because the card limits the amount that can be "charged" to the total available money. Why do I think that's a bad thing? The end result is that the kids may get a false sense of security about "real" credit cards because their prepaid card doesn't do anything to reinforce the insidious "nasty" side of "real" credit cards - that is, if you spend more than you can afford to pay at the end of each month, then you will be on the hook for some extremely onerous interest payments. In a twisted kind of way, I think it would probably be better to give them a credit card with a small credit limit and let them learn from their mistakes. The prepaid credit card idea is intriguing. I like the idea of the kids being able to go to a store, buy what they want and then swipe the card. On the flip side, what I DON’T like about it is the fact that the card is, well, prepaid. There are no real penalties for spending more than they can afford because the card limits the amount that can be “charged” to the total available money. Why do I think that’s a bad thing? The end result is that the kids may get a false sense of security about “real” credit cards because their prepaid card doesn’t do anything to reinforce the insidious “nasty” side of “real” credit cards – that is, if you spend more than you can afford to pay at the end of each month, then you will be on the hook for some extremely onerous interest payments.

In a twisted kind of way, I think it would probably be better to give them a credit card with a small credit limit and let them learn from their mistakes.

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