The institution of credit cards have been around since the 1950’s. Diners club was the first credit card company to begin offering services to consumers. Debt comes in different forms, most are hidden in everyday happenstances. Divorce, gambling, and financial illiteracy are a few of the major things that can cause a person to go into extreme debt. Consumer debt can be avoided and it starts with education of money and how it works, this education should begin in elementary school, and an even deeper education in high school. As most students have jobs and begin to earn money if they learn how to save then they are more likely to avoid debt and be more financially secure. Avoiding debt can be done by following simple steps such as, maintaining a regular budget, not spending an excessive amount without being able to pay it back, being modest in your lifestyle, buy used; save the difference, educating the young adults and children on how credit cards work and teach them how to properly save, however debt can not always be avoided (Bucci).
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Maintaining a budget isn’t always the easiest thing to do because it is a lifestyle change and it has to be followed very strictly and thoroughly. Try to live comfortably without without feeling like you have to strain yourself mentally to make your dollars stretch from month to month. This can be done by minimizing the amount of times that you eat out in a month, or living in a home or apartment that is a modest size and within your price range. Setting limits will prevent spending more money than needed. Budgeting shows how much a debt load can realistically be taken on without being stressed or if taking the debt load is worth it (10 Benefits). Setting limits doesn’t mean that you have to stay at home and do nothing but it does mean enjoying activities that are within spending range to avoid spending funds that aren’t there. Living a modest lifestyle means not having to have the nicest and newest thing to fit in and make friends. This could mean instead of going and getting a brand new outfit someone gets a thrift store outfit or a hand-me-down and they save the money that would have been spent on an outfit which will begin to accumulate money into their savings account. Most teenagers are spending more than they are saving, only 38% of teens said that they were saving their money instead of spending it (Statistic Brain). This means that most teenagers may have a job but they don’t keep that money for their future instead the money that is earned is spent on entertainment and food. Although budgeting at a young age can seem like too much of a hassle it will help to develop a pattern for the youth and that will carry with them into their adult years. A large majority of young adults aren’t aware of how to properly handle money and really how it works as well. Financial literacy isn’t a new concept to the country it’s been around for awhile. Teaching children that isn’t sitting them down and having a stern talk with them, it’s teaching them by example. “Historically, high school is where the bulk of financial literacy programs have targeted their efforts. But studies have found that the retention rate on financial lessons learned is two years at best”(Grant). Most parents don’t know how to manage their credit card without racking up major debt because they see that the money they are spending isn’t really theirs. “While credit cards are convenient, using them is not "free," as people think it is, even if one pays the balance off each month” (Schrower). Debt troubles come from the thought of credit cards being consequence free, and because of that they’re treated like an individual can spend however much they want and not worry about having to pay that back. That is financial illiteracy not knowing how money actually works and how it grows and leaves. Monetary education begins at the elementary age, by including money into everyday aspects that will teach children how to think through life choices while thinking about the cost of it. Debt can’t always
Maintaining a budget isn’t always the easiest thing to do because it is a lifestyle change and it has to be followed very strictly and thoroughly. Try to live comfortably without without feeling like you have to strain yourself mentally to make your dollars stretch from month to month. This can be done by minimizing the amount of times that you eat out in a month, or living in a home or apartment that is a modest size and within your price range. Setting limits will prevent spending more money than needed. Budgeting shows how much a debt load can realistically be taken on without being stressed or if taking the debt load is worth it (10 Benefits). Setting limits doesn’t mean that you have to stay at home and do nothing but it does mean enjoying activities that are within spending range to avoid spending funds that aren’t there. Living a modest lifestyle means not having to have the nicest and newest thing to fit in and make friends. This could mean instead of going and getting a brand new outfit someone gets a thrift store outfit or a hand-me-down and they save the money that would have been spent on an outfit which will begin to accumulate money into their savings account. Most teenagers are spending more than they are saving, only 38% of teens said that they were saving their money instead of spending it (Statistic Brain). This means that most teenagers may have a job but they don’t keep that money for their future instead the money that is earned is spent on entertainment and food. Although budgeting at a young age can seem like too much of a hassle it will help to develop a pattern for the youth and that will carry with them into their adult years. A large majority of young adults aren’t aware of how to properly handle money and really how it works as well. Financial literacy isn’t a new concept to the country it’s been around for awhile. Teaching children that isn’t sitting them down and having a stern talk with them, it’s teaching them by example. “Historically, high school is where the bulk of financial literacy programs have targeted their efforts. But studies have found that the retention rate on financial lessons learned is two years at best”(Grant). Most parents don’t know how to manage their credit card without racking up major debt because they see that the money they are spending isn’t really theirs. “While credit cards are convenient, using them is not "free," as people think it is, even if one pays the balance off each month” (Schrower). Debt troubles come from the thought of credit cards being consequence free, and because of that they’re treated like an individual can spend however much they want and not worry about having to pay that back. That is financial illiteracy not knowing how money actually works and how it grows and leaves. Monetary education begins at the elementary age, by including money into everyday aspects that will teach children how to think through life choices while thinking about the cost of it. Debt can’t always