Watching Your Wallet: Teaching your teen about debt

Published: May. 29, 2020 at 5:56 PM EDT
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Ask most college students how much money they'll owe when they graduate and about two thirds can't tell you.

As your child prepares to head off to college, do them a huge favor!

Teach them the ins and outs of their student loan. Have a real conversation about that debt-- interest rates-- and how much they need to make coming out of college.

Cherry Dale with the Virginia Credit Union helped us put this list together.

"So, you want to know who holds the loan and also when the loan is due. How long do you have between the time your graduate or drop out if you were to drop out of school... to when you have to start making payments," said Dale.

You could have multiple lenders or companies to pay back. So show them how to monitor their credit-- and log on for free each year.

Student loans are reported to the credit bureaus-- so explain to them what happens if they DON'T pay. Teach them the interest and fees and how that adds up overtime.

This isn't just to prepare them for paying back student loans-- it's also a lesson that will stick with them through life.

Copyright 2020 WILX. All rights reserved.

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