Inherited attitudes: What your parents taught you about debt
The way that we handle debt and deal with our finances is inherited from our parents.
The most valued piece of debt advice parents give, is to avoid debt at all costs but how much have our parents influenced our spending habits?
When interviewed, over half of Brits admitted that they have spending habits similar to their parents. Many parents pass on good debt advice such as to always check credit card and bank statements, to save regularly, always read the small print on any documents before signing and avoid borrowing money from friends or work colleagues.
Although these financial pearls of wisdom were firmly engrained, two in ten Brits admitted that they never had any savings, were constantly borrowing from friends and were on the verge of major debt problems.
Parents are new to credit card dependency and although their advice is sensible, young people are growing up in a world where credit is accepted as a normal part of life.
Although parental advice made perfect sense, nearly half of those interviewed admitted that they learnt about debt the hard way and their credit file has suffered. However, they have come to learn the importance of keeping a track of bills and paying them on time, of always checking their bank balances and credit card statements and checking the small print on credit card applications to avoid a debt nightmare.
This shows that negative experiences can have a positive effect on the way that we develop our spending habits.
Therefore, the only sure fire way to stay on top of a debt dilemma is to face the world as you know it, but always carry those little parental voices in your head which are only there to protect you from financial ruin.
