MSN money has an interesting article about how to guide teens toward financial safety. As they point out, teens can sign themselves up for all kinds of debt, even before they are able to legally drink. They can spend their whole lives trying to pay off student loans for instance.
It's a bit of a hot topic in fact. Recently, Sen. Christopher Dodd, introduced a bill that would place significant restrictions on credit card issuers who are targeting teenagers. It's called the Credit Card Accountability Responsibility and Disclosure Act of 2009 and it would stop card issuers from opening accounts for people under 21 unless they meet one of the requirements below:
- A parent, guardian or other responsible individual agrees to co-sign for the debt.
- The applicant provides proof he or she can independently repay the debt
- Proof is provided that the applicant has completed a certified financial literacy course
The bill would also stop them from adding people under 21 to the marketing lists they sell to others. Unless they get consent from the teen.
It's not a bad idea. But it's sad to think that we have to even think in these terms to keep our young safe from debt. If banks had acted responsibly for the last many years, it would not be necessary.
You can't trust a bank to look out for your best interest unfortunately. A little education and a little protection in the form of bills like this could go a long way to making your teen financially better off.
Tags bill Credit Debt finance Loans money teensRelated Posts
- Census scam artist tricks
- The Swine Flu Has Everyone Making Money, But You
- The Economy: Why Is No One Talking About Waste?
- 25 Finance & Money Management iPhone Applications
- Why Money Market Funds Aren't Safe