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WHAT DID WE LEARN IN SCHOOL?

Today your student reviewed the difference between credit cards and debit cards, and explored the hazards and benefits of each.

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QUESTIONS WE DISCUSSED AT SCHOOL:

• What is the difference between a credit and a debit card?
• Why is using a credit card a form of borrowing?
• If you want something that you cannot afford right now, a responsible option is to save for it rather than use a credit card.

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CONVERSATION STARTERS TO TRY AT HOME:

• What is a credit card? Why do people use credit cards?
• How can credit cards be helpful? How can they be harmful?
• Discuss the dangers of not paying your credit card bills in full and on time (for example, runaway debt that you can not easily pay back)
• People get many credit card offers from companies looking to lend them money hoping that they won’t pay their bill on time so the company can charge interest. Discuss ways to avoid paying interest on credit card bills and why it’s a good idea to have too many credit cards.

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LESSON: CREDIT - A DELICATE BALANCE

Think of a big ticket item that your student might want. Think about how long it would take to save for that item. Then go to the credit card calculator and calculate the extra cost of only paying the minimum payment on the credit card. Discuss where this “extra cost” comes from and why it is important to pay your credit card balance in full and on time.

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Credit Card Calculator: creditcards.com/calculators/payoff/

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Go to the Secret Millionaire’s Club Parent Guide for more discussion and activity ideas. http://bit.ly/2ZDSQVP

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