Children begin to learn about credit when they learn to borrow things from others and return them quickly and in good condition. A family rule about borrowing can save many bad feelings and prepare the way for wise borrowing later.
For children (parents too!) "buying now" is a lot more fun than "paying later." We live in an economy where some businesses make credit available for teens and sometimes even twelve year olds. Parents are left with the task of teaching children about limited resources in the midst of a market filled with unlimited choice.
Most fifth graders know that anything borrowed should be returned. Most children understand that money can be borrowed; they may not know about collateral, repossession, repayment schedules or interest. They may not know you are making payments on credit.
Since many fifth graders may not have studied percentages in math, a lesson about interest may or may not be understood.
You will want to explain these terms, but the best teacher your child can have is your good example.
For more information the following publication is available at your county office of the NDSU Extension Service.
HE-260, "Credit-Using It Wisely"
Additional Information: Family Resource Management Publications
Brought to you by the NDSU Extension Service.
See your county extension agent for more money management information and other family economics programs.
NDSU Extension Service, North Dakota State University of Agriculture and Applied Science, and U.S. Department of
Agriculture cooperating. Sharon D. Anderson, Director, Fargo, North Dakota. Distributed in furtherance of the Acts of Congress of
May 8 and June 30, 1914. We offer our programs and facilities to all persons regardless of race, color, national origin, religion,
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