If someone is tempted by available credit, they may be better off reducing the credit that is available to them even though they may take a hit on their debt/credit ratio. A good portion of financial decisions is dependent on the person involved.

I definitely agree that having department store cards is almost always a bad idea!

My grandmother & mother were very resourceful & made that $ stretch but I’ve had to teach myself about financial independence & enjoyed the learning curve & reaped the rewards.

I’ve learnt about shares, managed investments & more. I will keep talking to my son & his friends. One day my son will be thankful when I sign over his managed investments that I have been growing for him over the years…until then I will be keeping them safe.

The problem is that there are many parents that don’t understand personal finance themselves and therefore cannot exactly teach their children about what to do and not do. Thus the cycle continues to repeat unless the child takes the initiative to learn about their own finances.

Keep talking to your teenager and his friends, as even though it may seem like it is falling on deaf ears you might be surprised at how much is actually getting through to him. When he is faced with a decision, he may think: “Oh yeah, I remember my parents telling me about that.”

That is great that you haven’t paid interest in years, keep up the good work!

Thanks for the reminder on keeping my credit card accounts open. I do have a couple of credit cards. My main one is linked to a points system & can be redeemed for petrol vouchers etc.

I mainly use my credit card to keep a tab on my spending. Sometimes it can be a rude awakening to see that bill when it comes in. I do pay it off every month in full and it’s been many years since I paid interest.

This information is so important for readers to understand. I believe these money life skills should be taught in our schools to better equip our kids on how to manage & grow their finances.

The debt:credit ratio is one reason I hadn’t closed my older credit cards as I’d heard this before.

Will definitely be checking out your site for more info.

One thing I find so frustrating is that I have the financial info and try to pass it onto my teenager but of course has been falling on deaf ears…. I think it’s called ’selective hearing’. At least some of his mates listen to me & I can make a difference to their financial future.