Teach Your Child About Credit Card

One best way to learn about credit card is by someone else’s example to get an idea of how easy it is to accumulate credit card debt and how hard it can be to get out of debt making only minimum payments.

William uses credit card for petrol and on holiday. When he gets home, he finds out that the total of all of his charges comes to $3,500. If he is unable to pay off the entire balance in a single on-time payment, how long will it take William to pay off the entire balance if he only settle for 5% minimum payment of $175?

The financial institution will charge 15% interest and that will cost $525. With the original debt of $3,500. It will take William 23 months to pay off the entire debt.

With enough credit card and enough credit card debt, it is actually possible to become economically trapped where you will never get out of debt. Hence, avoid going into debt for anything you don’t actually need.

About Tiffany Tang
Tiffany was a former Financial Controller for INTI Education Group, Malaysia (part of US Laureate International Universities, US). She worked as a Regional Accountant and had been in a regional exposure in few countries such as Singapore, Shanghai, Korea, India, and Japan. She worked for a few large multinational companies in the industry of retail, bulk logistics, computer hardware and civil engineering firm. She has more than 15 years of working experience. She holds a Bachelor (Hons) in Applied Accounting, UK. She is also a member of IFA, UK.

2 Responses to Teach Your Child About Credit Card

  1. Chang Junn says:

    Wow , you have written a series of financial intelligence books, I got to buy them all. Well done Tiffany!

    • Tiffany Tang says:

      Hi Chang Junn, thanks for your support. I’m currently writing another book with the title of Financial Intelligence for Kids (age 9-12). It will be coming up soon. And also more financial articles. Do share the articles out so more parents can discuss the material with their child. 🙂

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: