I worked for a student loan co as a customer service person during college; I have dealt with college students and contractors and the like failing to pay their bills from a legal perspective, including eveictions and foreclosures, and it all comes down to Chris’s basic message- Don’t sign anything you don’t understand, and live up to the obligations you have knowingly taken on. Understand that if you want a new ipod, you have to pay the rent and the mortgage first, and deferred gratification is a good thing.
But I also think we need to start teaching real world economics and money management skills to kids starting in middle school. Not just “balance your checkbook” stuff, but “This Number of dollars is needed per month to cover your most basic needs. Then you need to save in case you can’t work because you get sick. After all of that is paid for, then you can start talking about ways to manage the gravy.”
I know too many grownups who get themseleves into debt because they don’t understand how expensive compounded interest is, what they can really afford, or how to say no. Banks will always lend you as much money as you want if you have a decent credit rating- you’d be STUPID to say yes.

I worked for a student loan co as a customer service person during college; I have dealt with college students and contractors and the like failing to pay their bills from a legal perspective, including eveictions and foreclosures, and it all comes down to Chris’s basic message- Don’t sign anything you don’t understand, and live up to the obligations you have knowingly taken on. Understand that if you want a new ipod, you have to pay the rent and the mortgage first, and deferred gratification is a good thing.
But I also think we need to start teaching real world economics and money management skills to kids starting in middle school. Not just “balance your checkbook” stuff, but “This Number of dollars is needed per month to cover your most basic needs. Then you need to save in case you can’t work because you get sick. After all of that is paid for, then you can start talking about ways to manage the gravy.”
I know too many grownups who get themseleves into debt because they don’t understand how expensive compounded interest is, what they can really afford, or how to say no. Banks will always lend you as much money as you want if you have a decent credit rating- you’d be STUPID to say yes.

In other words, great post!