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The One Lesson Never to Teach Your Child

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If you don't have money you can use a card?

Child asking a question.

Child asking a question.

Annie's Story

Note: All photos on this hub are courtesy of Pixabay.com Pixabay photos are free to download and use in any format.

NOTE: While this hub starts out with a short story, this is purely to illustrate the main focus of this informative article. The story takes up one paragraph. The rest of the article is focused on using credit and debit wisely to keep a tight hold on the relationship between your income and your expenditure..


"Granny", Annie said tentatively, chewing the ends of one of her plaits. "Daddy bought me a whole load of Christmas presents today."

Her granny looked up from the magazine she was reading, closely eyeing the chewed plait. "That was very kind of him. That must have been expensive."

"Yes," she said, nodding her head in agreement and releasing the chewed hair to let both plaits bob back over her shoulders. "He got me a Furby and that costs a LOT of money and he got me a lot of other toys I wanted." She reeled off the names of other popular toys, all expensive, then paused.

"Granny?"

"Yes?"

"Daddy hasn't got any money, has he?" Her granny put the magazine down, frowning slightly and turned to give Annie her full attention.

"What makes you say that?" she asked slowly.

"Well he said he didn't have the money, so he put it on his card. If you don't have any money, you can just put what you want to buy on your card, can't you Granny?"

Granny took a deep breath. "You still need to have money to pay back on the card," she pointed out, but Annie was already away to play with one of the toys her daddy had allowed her to have from the Christmas stash.

Granny shook her head and got up to find Annie's father.

"That's not what I meant," he exclaimed impatiently, after his mother had explained her concerns. "I paid for the toys with a debit card, that takes the money straight from my account, not a credit card, where you pay interest and the debt can pile up if you let it."

What's YOUR expenditure pattern?

Cards make it too easy to spend

Debit and Credit Cards

Debit and Credit Cards

What Was the Lesson?

Annie does not understand money, debit and credit. She has no idea that the money you take from a "hole in the wall" or ATM is actually your own money that you have earned and that has been deposited in your bank account by your employer, or however you earn your money. Annie also doesn't understand the difference between a debit card and a credit card. But do we? There seems to be a disconnect somewhere between the idea of earning or accumulating money and what we actually spend. And this disconnect seems to me to have come about since we stopped using cash and took to using debit and credit cards.

Whatever you want?

As many toys as you want from the on line shop in the sky?

As many toys as you want from the on line shop in the sky?

The child's lesson

Children have to learn the idea of "correspondence", that is, that what you spend has to correspond with the money you actually have. They learn about coins in school and how to add or subtract money but do they learn that you need to HAVE this money first, before you can spend it? Children's pocket money and money earned from chores used to be the way they learned how to budget their money or how to save for something big that they wanted. But nowadays? Do they just ask and expect whatever they want to arrive from the on-line warehouse by "using the card"?

It All Adds up!

Even one latte a day can add up to hundreds or thousands of pounds or dollars a year.

Even one latte a day can add up to hundreds or thousands of pounds or dollars a year.

The adults' lesson

Many adults too, have been taken in by the ease of "the card". Advertising tells you what you should "want" or "must have" in order to take your rightful place in society. Other advertising tells you how "easy" it is to get credit or easy terms to get what you want. What they don't tell you is that using all those easy terms and credit adds up over time to a thumping unaffordable sum and that much of what you got with the money went on non-essentials. that is, it wasn't spent on food, housing costs, heating or necessary clothing but on unnecessary items. I can't tell you what those unnecessary items were but take this tiny example: maybe you work in town and you go out every lunchtime to have coffee with friends or colleagues. Because you are in a group and you don't want to seem mean or unable to keep up with the crowd, you order the spiced latte or some other popular drink. It's only $5 or £3. What's that? If you work 5 days a week for 46 weeks a year, that adds up to 230 days at $5 a day = $1150 or £690 in the UK. Maybe you buy your lunch or an impulse treat in the shops, even an average of $10 or £10 a day on each working day will cost you £2,300 or $2,300 over a working year. That may seem like small change to someone in work (though not to someone who is unemployed) but apply the same to something bigger that you "WANT" but don't "NEED". Do you need two foreign holidays a year? Do you need to replace your furniture with something different or buy another car? Do you need to buy designer clothing?

What's the difference?

For each question, choose the best answer. The answer key is below.

  1. What is a Debit card?
    • A debit card takes money directly from your bank account
    • A debit card makes extra money available to pay for things
  2. What is a Credit card?
    • A credit card lends you money to buy things you can't afford to pay cash for
    • A credit card only lets you spend the money you already have in the bank
  3. What is a charge card?
    • A charge card is the same as a credit card.
    • A charge card is the same as a debit card

Answer Key

  1. A debit card takes money directly from your bank account
  2. A credit card lends you money to buy things you can't afford to pay cash for
  3. A charge card is the same as a debit card

Interpreting Your Score

If you got 0 correct answers: Maybe you want to read up a bit on the different types of money card available.

If you got 1 correct answer: Maybe you want to read up a bit on the different types of money card available.

If you got 2 correct answers: You are reasonably knowledgeable about the different types of money card.

If you got 3 correct answers: Excellent, you know your money cards

The Answer

Well, no, I don't have an answer. What I want is different from what you want. And what I can do without, maybe you can't (and vice versa, I am not excepting myself from this). But I have learned to ask the following questions (adapted from the money saving expert's site) when I see something I might want to buy, which is "Do I need it and Can I afford it?" If either answer is "No", I try not to buy it. I have also taken to using cash for my needs, instead of a bank card (adapted from Pam Young's "Get out of debt book" - the GOOD book) because you can SEE what you are spending your money on and SEE that it is getting depleted, whereas if you use a card, you do not get this physical realisation that your resources are being rapidly depleted. Adults have a "disconnect" where money and cards are concerned too.

Use cash more often

Use cash more often to connect expenditure with resources

Use cash more often to connect expenditure with resources

The action

So what action can you take to reduce dependence on bank cards, if you want to cut your expenditure?

1. Use cash more often, instead of your card, especially for those small purchases that can add up to large amounts unknowingly.
2. Ask yourself the two questions "Do I need it and Can I afford it?" before purchasing anything.
3. If you don't want to make up a total budget, then start out by allowing yourself a small daily budget of say, $10 or £6 and keep that on you in CASH. Once it's gone, it's gone. If anything is left over, put it in a jar and save it towards a treat.
4. Teach your children the correspondence between what you have and what you can spend - it may be the most valuable financial lesson they'll ever learn.

The Next BIG Problem

There are now contactless payment cards. Some of you may already have them. In London, the "Oyster" card is used to pay for travel journeys on the London Underground. You top up the card, and then as you travel on the Underground (metro), your total amount is depleted without having to use a machine, the cost is deducted contactlessly as you pass the barriers. But some customers have had the wrong card charged! http://www.theguardian.com/money/2013/may/25/contactless-cards

Banks have been testing out debit cards for contactless payment in some areas in England. Children got pocket money cards and adults did not use cash at all, just these cards even to pay for very small amounts (such as a bar of chocolate).

Banks are now issuing contactless cards whether you want them or not! Some customers are complaining that they have been charged on these when they did not want to pay that way. http://www.thisismoney.co.uk/money/saving/article-2328578/How-safe-new-contactless-bank-cards.html

Why would banks issue contactless cards? Well, they say they are safer for the customer and remove the need for large amounts of money to be moved about the country. I suppose it doesn't hurt the banks that they then find out EVERYTHING about your spending habits, down to the last bar of chocolate or skinny latte you buy? This is valuable information that they could sell.

BUT it still gives US a disconnect between the money we have available to us and the amount we spend. Is that deliberate?

What do YOU think?

DreamerMeg (author) from Northern Ireland on July 02, 2020:

I definitely think it is worth a try. I believe there will be more people home schooling in the coming years. And also, there is a push to move from cash to using cards only. That has terrible implications for people getting into debt.

Denise McGill from Fresno CA on July 02, 2020:

Each time I see this article, I think I should record my kid's lesson in finance in the form of an article. I just haven't done it yet. The hold-back is that I threw away all those old "checks" and dilemmas I created back then. I wonder if I could recreate them. It may be worth a try.

Blessings,

Denise

DreamerMeg (author) from Northern Ireland on April 26, 2020:

Thanks for visiting and commenting Linda. Yes, best to spend "real" money.

Linda Rogers from Minnesota on April 25, 2020:

I tend to use my bank debit card which is real money. I cannot afford to be using credit cards that I have to pay back. I like to use money that is available. Thanks for the great article.

DreamerMeg (author) from Northern Ireland on February 24, 2020:

Thank you for visiting Shaloo Walia. Yes, I have become mainly a cash spender too, apart from large purchases which I make using a credit card because it provides more security.

Shaloo Walia from India on February 20, 2020:

After getting in credit card debt, I learnt my lesson. Now I use cash most of the times and have become a conscious spender.

DreamerMeg (author) from Northern Ireland on February 14, 2020:

I pointed a homeschooler towards your comment, Denise, and she was very excited by it. Thought it would be a great idea for her home schooled children. They are too young for the check book bit yet but she is letting them help with shopping and paying for items. My 13 year old granddaughter reall has no concept of saving or value for money. She wants a VR headset and I want her to research the best one for herself and decide which will be best value for money, then check to see whether she has enough!

Denise McGill from Fresno CA on February 10, 2020:

No I never did. I wonder if anyone would be really interested. You think? I may consider it. Times are changing and hardly anyone writes checks anymore but they still have bank accounts that need balancing.

Blessings,

Denise

DreamerMeg (author) from Northern Ireland on February 10, 2020:

Hi Denise, thank you for visiting. That would be a fantastic lesson for homeschooling, did you ever think of creating it into a module and selling it?

Denise McGill from Fresno CA on February 10, 2020:

When I homeschooled my children I created a class I called "Real World Math" where at the age of 10, 11, and 12, I gave them a fake credit card each, a fake debit card each and a fake job with a fake bank account. Each month they received fake bills and had to pull out their fake checkbook, write checks, balance their account and buy fake food, etc. After a while, I created fake dilemmas that would eat more out of their account than they expected like flat tires or parents visiting. Most of them created a scrapbook of the fake furniture they "bought" with their fake credit card as well as car and other stuff. To this day they thank me for the knowledge of how to balance a bank account the simple knowledge of how to write a check and handle money. It was so simple and yet so educational.

Blessings,

Denise

DreamerMeg (author) from Northern Ireland on November 07, 2019:

Yes, it is a hard lesson to learn even for adults. It is the little child within us that wants those things for ourselves and we do not like to deny our children but it is a good lesson for them to learn.

Luis G Asuncion from City of San Jose Del Monte, Bulacan, Philippines on November 06, 2019:

A big ouch in my part with this article. Most of the times, when we go outside, we usually spend money. Of course that's the reason why we go outside. But most of the times, it happens uncontrollable. I don't have a credit card, however, I do have cash and debit card. Before, we go outside, I usually withdraw from the ATM the exact budget we should need for that shopping. But when my kids, wanted to buy this and buy that, even if that is not part of the budget, I forced myself to withdraw again from the ATM. And my kids, do not understand where the money in my ATM came from. As long as they are aware that there is money in the ATM. They wanted to ask to buy those things or toys.

DreamerMeg (author) from Northern Ireland on May 12, 2019:

Thank you so much. Our circumstances can change our perspectives very quickly and we find out what our real needs are!

Patricia Scott from North Central Florida on May 12, 2019:

Well said----my perspective on money changed drastically when I had to retire early because my daughter is sick. My wants are still present but needs take priority thanks for sharing this Angels once again are on the way ps

Robert Sacchi on May 05, 2019:

You're welcome and thanks for posting.

DreamerMeg (author) from Northern Ireland on May 05, 2019:

Indeed. Looking at your $1 a day as being a whole month's payment on the car, could stop some of us in our tracks! Thanks for adding that.

Robert Sacchi on May 05, 2019:

A good article on money management. A take away is convenience costs. I like the way you add up in reverse. The strategy for people who want your money is "It's just $1 a day". You point out that adds up to $365.25 a year, which is 1 of the 12 car payments some people have to make a year.

DreamerMeg (author) from Northern Ireland on September 25, 2015:

Thanks for visiting and commenting pstraubie48

Patricia Scott from North Central Florida on September 24, 2015:

Yes definitely teaching about money and

how it works is crucial. I know too many sad stories of those who have gotten lost in the trap with dire consequences.

Teaching about money, credit, debit, and saving can begin at a very early age too.

Angels are on the way to you today ps

DreamerMeg (author) from Northern Ireland on September 23, 2015:

Thank you for clarifying that. We have those cards in the UK as well but here those would be called "store" cards.

DW Davis from Eastern NC on September 22, 2015:

I enjoyed reading your Hub and think the lesson is important to share with children and I know a lot of adults who need it as well.

One thing I see was mentioned in the comments already was the definition of charge card. Here in the US a charge card is a non-bank card issued by a store that allows you to buy merchandise at that store or chain only. Like credit cards, most give you a certain time to pay without interest. They work somewhat like the old fashioned charge account at the local general store or grocer did once upon a time. You are allowed to take the merchandise at time of purchase and then pay it off at the end of the month.

Snakesmum on February 13, 2015:

Totally agree with what you say. We were brought up to be careful with money, and I've always had a budget. Don't think I could manage without it. :-) My spreadsheet tells me exactly how I'm doing!

Voted up.

DreamerMeg (author) from Northern Ireland on February 13, 2015:

There may be differences between American and British terminology.

DreamerMeg (author) from Northern Ireland on February 13, 2015:

Yes, brushed under the carpet

DreamerMeg (author) from Northern Ireland on February 13, 2015:

Yes, I follow you.

Frank Atanacio from Shelton on February 13, 2015:

a very good hub.. valuable.. and the break down is important one thing I got wrong was your quiz I thought a charge card was the same as a credit card.. hmm

Tami Rogers from Seattle, Washington on February 12, 2015:

Great hub! I raised two girls (now in college) and we constantly warn them off debt. (We only have a mortgage!) I feel this is SO important and not talked about nearly enough! Bravo!

Kenneth Avery from Hamilton, Alabama on February 12, 2015:

Feb. 12

DreamerMeg,

Great read. Very helpful advice on such an important topic. My only daughter has always been very frugal even at her first job as a waitress. She would save and save. She saved enough to make a down payment on her first car.

Her husband is also a good money manager. Sure, at Christmas and birthdays, they spend on MY three grandkids, but never buy for themselves.

I appreciate your writing talent.

I wonder if you ever became one of my followers. I cannot remember But anyway, have a Happy Valentine's Day.

DreamerMeg (author) from Northern Ireland on February 12, 2015:

You have plenty of time, yet, before money becomes a topic! I hope you are enjoying playing with your baby.

Prabhjot from Delhi, India on February 09, 2015:

My baby is eight months old and I have a lot to learn and know about saying and doing the right thing around him.

Thank you for such a useful hub. Voted up.....

DreamerMeg (author) from Northern Ireland on August 10, 2014:

Yes, so very easily. Thanks for visiting.

stars439 from Louisiana, The Magnolia and Pelican State. on August 10, 2014:

A very good hub. Credit cards can easily ruin the financial freedom of individuals if there not managed properly. GBY

DreamerMeg (author) from Northern Ireland on July 07, 2014:

Thanks very much for visiting and commenting. I have heard of Suze Orman, must read her sometime. Children are little copycats and, as my mother used to say, "they have very long ears", that is they HEAR what you say, too.

FlourishAnyway from USA on July 07, 2014:

Great recommendations, Meg. I particularly like the distinction between want vs. need. I am a close adherent of Suze Orman's financial wisdom which closely aligns with some of what you are saying. Kids definitely look at what your behaviors are and they copy it later in their own lives.

DreamerMeg (author) from Northern Ireland on July 04, 2014:

Needs, rather than wants are VERY important but advertising is aimed directly at getting people to satisfy their wants. I would LOVE a couple of hundred million people to read it! :) Thanks for visiting and commenting.

Bill Holland from Olympia, WA on July 04, 2014:

We purchase according to needs rather than wants, and we always pay cash. We do not own credit cards.....this is such an important article...now if we can get a couple hundred million people to read it.

DreamerMeg (author) from Northern Ireland on May 29, 2014:

Yes, very true. Thanks for commenting.

Dianna Mendez on May 28, 2014:

This is valuable information on spending and saving money. I think too many of our youth think a credit or debit card have infinite cash balance.

Kenneth Avery from Hamilton, Alabama on May 18, 2014:

My pleasure, Dreamer Meg.

You are a very-talented writer and I appreciate your talent.

DreamerMeg (author) from Northern Ireland on May 18, 2014:

Thanks very much for reading and commenting.

Kenneth Avery from Hamilton, Alabama on May 17, 2014:

Hi, DreamerMeg,

Great read. Very informative. Every newlywed couple shoud rea this after the "I do's" are said. Votd up and all the choices. Check your fan mail.

I love your talent for writing.

I cordially-invite you to check two of my hubs and then be one of my followers. I would love that.

Sincerely,

Kenneth/ from northwest Alabama

DreamerMeg (author) from Northern Ireland on April 06, 2014:

Thanks for reading and commenting. A credit card can be useful (in the UK, anyway) because it can give you protection on large purchases but only if you can actually AFFORD what you are buying.

Erin Nichols from Montana on April 05, 2014:

What an excellent lesson and hub! I think it is very important to understand money and to only spend what we have. I never use a credit card and at one point I thought I wanted one, but it just isn't in my beat interest.

DreamerMeg (author) from Northern Ireland on March 17, 2014:

Or we should teach them to use them wisely - buying only what we can afford to repay and NEVER for everyday living expenses.

Michelle Liew from Singapore on March 16, 2014:

True...we shouldn't teach our kids to use credit cards because of potential overspending!

DreamerMeg (author) from Northern Ireland on March 15, 2014:

Thank you so much for your comment and for visiting.

Eiddwen from Wales on March 15, 2014:

A wonderful hub which leaves much food for thought. Brilliant work here and I wish you a great weekend.

Eddy.

DreamerMeg (author) from Northern Ireland on March 09, 2014:

Thank you for visiting and commenting.

kerlund74 from Sweden on March 09, 2014:

Great hub on an important issue! I think that it is easy to forget that it is money on our cards, it is so easy to shop and pay later. What you write about is extremely important to know and act on, for adults and children.

DreamerMeg (author) from Northern Ireland on March 06, 2014:

Living within your means - an old piece of advice but SO important! Thanks for visiting and commenting.

CrisSp from Sky Is The Limit Adventure on March 05, 2014:

Great hub!

This is what I've been teaching my girls and I cannot emphasize it enough not to buy anything if you don't have the money. I'm so proud of my youngest who's now a freshman in the University and knows how to handle her finances, like not using her credit card unless it is really necessary and if she does, she'd make sure to pay the full amount before the due date comes in. More often, she'd use cash as I taught her.

Credit cards are trapped! It's best to stay away unless really very necessary and simply learn to just live within your means.

Great advise. Absolutely worth sharing. Voted up and useful. Thank you.

DreamerMeg (author) from Northern Ireland on March 02, 2014:

Earning money is important. Thanks for visiting.

Suzanne Day from Melbourne, Victoria, Australia on March 02, 2014:

This is indeed a very important lesson for children (and adults) to learn. I noticed my kids had a similar attitude to Annie for awhile there, because I hadn't invented their pocket money chores etc. Now that there is a pocket money regime and they need to save for what they want, they are understanding money matters a lot more. Also, sometimes it's good not to let them get everything they want....makes them remember saving for rainy days and also gives them a reason to strive. Voted useful and up!

DreamerMeg (author) from Northern Ireland on February 21, 2014:

Yes, it's so easy to get into debt and it takes so long to get rid of! Thanks for commenting.

Lynsey Hart from Lanarkshire on February 21, 2014:

Great hub! I learned the lesson about debt early in life, but unfortunately it didn't stop me learning for myself when I was in my late teens. Credit cards can be so tempting when you know you can't afford something, but reeeeeeeeeeeeally want it! Still paying the debt at 25! Avoid credit cards like the plague now! Voted up and useful!

DreamerMeg (author) from Northern Ireland on February 19, 2014:

Thank you very much. Yes, somehow, cash is more "real".

VioletteRose from Atlanta on February 19, 2014:

This is really a very thoughtful article, thank you for sharing it with a nice story. I usually use the debit card only for large amounts, somehow I feel more comfortable with using the actual cash. I hope my kids get the real meaning of all these and the importance of spending money within the budget.

DreamerMeg (author) from Northern Ireland on February 19, 2014:

That's a great way to be! Thanks for reading and commenting.

Devika Primić from Dubrovnik, Croatia on February 19, 2014:

the One Lesson NEVER to Teach Your Child is a great lesson indeed. I don't use credit cards or nay other card.

DreamerMeg (author) from Northern Ireland on February 11, 2014:

Thank you

Deborah-Diane from Orange County, California on February 11, 2014:

Great advice!

DreamerMeg (author) from Northern Ireland on February 11, 2014:

Thank you for visiting. Yes, you're right! Credit cards make it too easy to spend money that we might not otherwise spend.

Sanjay Sharma from Mandi (HP) India on February 11, 2014:

Great hub. The credit cards make us extravagant. I enjoyed reading it.

DreamerMeg (author) from Northern Ireland on February 08, 2014:

Budgeting is very useful. I have most of my direct debits for my utilities coming out of my account at the end of the month BEFORE I get paid, so I know I have to leave a certain amount available for those!

Brian Leekley from Bainbridge Island, Washington, USA on February 08, 2014:

Up, Useful, and Interesting.

Many of us adults have needed to learn those lessons, too. I was a too slow learner when I needed to understand the concept of compound interest. I stopped using credit cards years ago.

I usually have a little bit of pocket cash, but I mainly use a debit card. I keep aware of our financial situation by going to our credit union account online and writing down the balance, the available balance after subtracting pending payments, the actual balance after subtracting any uncleared checks and such, and the spendable balance after subtracting a $25 cushion just in case I messed up and forgot something. Then I look at how many days till payday. If, for instance, $12 has to last half a week, we minimize spending. When we're more flush, we might buy groceries, car gas, or whatever.

I also make use of a number of savings accounts. One, for instance, I nicknamed Set-aside. I move into it cash for paying bills that are not due yet but will come due before next payday.

Learning how to make a budget and to honor it is our next lesson. We have good intentions to give that a try soon.

DreamerMeg (author) from Northern Ireland on February 04, 2014:

Yes, it makes life a LOT less stressful in so many ways. Thanks for visiting and commenting.

Judy Specht from California on February 03, 2014:

Excellent ideas. My son and his wife got rid of their credit cards Then when one of them lost their job they didn't have quite so much burden.

DreamerMeg (author) from Northern Ireland on January 28, 2014:

Thank you very much. Most of my writing at present has to be on my thesis but occasionally I see or hear something I just HAVE to write about. Thanks for visiting.

Eiddwen from Wales on January 28, 2014:

Interesting indeed and I now look forward to many more by you.

Eddy.

DreamerMeg (author) from Northern Ireland on January 27, 2014:

Needs and Wants is a great way of looking at possible purchases - the "wants" often turn into "stuff to store or get rid of", straight after we have purchased them! Thanks for visiting.

Bill Holland from Olympia, WA on January 27, 2014:

I think we come from the same generation my friend. I do not have a credit or debit card. I want to feel the money in my hands when I spend it...it hurts just a little that way. LOL Seriously, I try to live my life according to "needs vs want" when spending....do I need it or merely want it? Seems to be working for me. Great message here!

DreamerMeg (author) from Northern Ireland on January 27, 2014:

It certainly makes life less stressful. Thank you for visiting.

Jackie Lynnley from the beautiful south on January 27, 2014:

My parents taught me this lesson and I live by it. It may not make you rich but it can save a lot of stress and worry. I think it just makes a more honest person of you to know you cannot spend what isn't yours. ^+

DreamerMeg (author) from Northern Ireland on January 25, 2014:

Thank you very much for reading and commenting. Everything you have said is quite true. And we are all living beyond our means. I loved Charles Dickens' comment as Mr Micawber: Annual income £20, annual expenditure £19 19s and 6d (old UK money), net result, happiness, annual expenditure £20 and 6d, net result - misery!

Faith Reaper from southern USA on January 25, 2014:

I love how you incorporated your story about Annie here to teach about the differences of using cash and going into debt to pay for items. Going into debt is never the answer for sure, and I do believe we should teach children at a young age about money. The only time to use a credit card is to build one's credit history, but one should buy one item or maybe gas, and then pay it all off at the end of the month or whenever it is due. That will boost one's credit score. Otherwise, never use credit cards to live on!!! On my daily hour commute to and fro, I listen to Faith Radio and they have a money show. They recommend first and foremost that all get out of debt, as one will become a slave to it. When one gets paid, give 10% to the Lord first, then 10% to savings and then pay your bills and live off what is left and that is it. We are living beyond our means today and it takes its toll on our economy and personal lives. They also recommend to save at least three times one's monthly bills for an emergency so that one an emergency happens, one does not have to go into debt to get that car or air conditioner repaired. In addition, they say to pay off the smallest credit card or debt first, so you have some sense of accomplishment and then, once paid off, use that money to pay extra on the next lowest card until it is paid off, and keep going until all is paid off. Of course, it is better to have never gone into debt to begin with, and that is what we should teach our children.

Very useful hub. Up and more and sharing.

Blessings,

Faith Reaper

DreamerMeg (author) from Northern Ireland on January 13, 2014:

@WillStarr. Thanks for visiting and commenting. I didn't even realise your comment was there because HubPages marked it as SPAM!!!

DreamerMeg (author) from Northern Ireland on January 12, 2014:

Thank you very much, and for visiting.

APooch on January 12, 2014:

DreamerMeg.. I love the story. I like how you tied the story into your lesson ! Very interesting stuff and a great way of showing us what you mean.

DreamerMeg (author) from Northern Ireland on January 11, 2014:

Thanks.

Ben Blackwell on January 11, 2014:

This is a good hub. Keep up the good work.

DreamerMeg (author) from Northern Ireland on January 04, 2014:

That is an awful feeling. Glad you got it sorted in the end.

Nell Rose from England on January 04, 2014:

Oh how I totally agree with you! I have only ever had one credit card, that was to buy myself a motor bike years ago. And it was a terrible mistake. the bank wrote down the payback details wrong, tried to take money out of my account on the 24th of the month when my money only went in on the 25th of every month, and I got in so much debt because they never told me until six months later! by that time I was up to about 2,ooo pounds worth! I got it sorted out in the end, but took ages to pay it back, though it was there fault! never ever again. great post! nell

DreamerMeg (author) from Northern Ireland on December 29, 2013:

Yes, children pay VERY great attention, even if we don't realise it! Thanks for visiting.

RTalloni on December 28, 2013:

Daddy didn't have cash on him at the moment and he did not communicate the situation clearly. Annie's response shows how closely kids pay attention to what adults are saying and doing--the two should match! :)

Good points to make here at the beginning of a new year. Glad to see the topic highlighted with such a clear example!

WillStarr from Phoenix, Arizona on December 22, 2013:

If only our government would read this. Their (our) credit card debt is now $17,000,000,000,000 and counting.

DreamerMeg (author) from Northern Ireland on December 22, 2013:

That`s very true and I hadn't even thought of it that way! Thanks for visiting and commenting.

erinshelby from United States on December 22, 2013:

It's interesting that you said a latte can add up to extra pounds (currency) but that could also mean physical pounds. Money and weight are related on so many levels.

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