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When my son was in 1st grade, I decided to volunteer with Junior Achievement to put some economics education into his curriculum. After I had learned some hard lessons about credit cards, I thought it was imperative that I make sure he and kids his age be forewarned about the dangers of debt. Our kids, at no time in their basic education through high school are learning to manage money. I suppose the system has left that up to the parents. Unfortunately, parents have not been doing a good enough job, and the banks and credit card companies are stepping in to fill the gap. The problem is that they are teaching our children to use credit cards, and to borrow money is a good money strategy.
In the 2nd grade class when I taught the Junior Achievement curriculum, something astonished me. The lesson taught children about money, but with a twist. There was a little town we created and all the children played a role in the local economy. They were given money and were asked what they would do with it in the local economy. The lesson led them to the idea that the money could only be spent. There was no mention of putting some in the local bank to save it. Also, the little picture card to illustrate money had pictures of coins, dollars, a check, and a credit card. This curriculum was teaching children that credit cards are money. So I added a story to illustrate why they shouldn't think of credit cards as money.
Now from a technical perspective, it is difficult to argue that credit cards are in fact money because our real money is nothing more than debt itself, as a fiat currency. However, credit cards directly put people in debt spending money they don't have. That is different, and teaching kids that credit cards are money is irresponsible. This is evidence to me that we need to be watching what our kids learn at school very closely. The banks are marketing to children.
One clear example of this is that VISA teamed up with Hasbro, Inc. to change the famous game, The Game of Life, originally launched in 1960, which simulates the road from high school to retirement. You deal with college, jobs, insurance, investments, marriage, children, taxes, homeownership, and medical emergencies. Now that VISA is involved, they are throwing out the cash, and you use a VISA instead. The message this sends the kids who play this game is clear. It teaches them to use credit cards instead of cash. It is purposely indoctrinating the advertising claim that "Life Takes VISA". I submit to you they got it backwards, VISA takes life instead because it puts you in debt.
Rather, we should be teaching our children about how to use cash and only buy things they have the money for. What this game is creating are young adults that will be saddled with oppressive debt on their credit cards before they even graduate from college. Robert Manning, in his book "Credit Card Nation" even tells about college age young adults who committed suicide at school because of the debt they racked up and derailed their career ambitions while in college. Some argue credit cards are the cash of the future, but they are ignoring the debt mentality we are creating, teaching our children to spend more than they make.
Sure, VISA includes a money management booklet with the game, and says some things about being responsible with money and credit cards, but that is about as effective as putting a warning about cancer on a pack of cigarettes. People won't pay attention to the stuff that isn't fun. Do they explain that the FICO score is a debt marketing tool because it requires that you borrow money? Do they explain that maximizing your FICO score is borrowing money so you can borrow more money later? I doubt it.
So parents, pay attention to the little signs in your child's attitudes toward money. Teach your children that credit cards create debt, and debt is something to avoid with a vengeance. Teach them to manage money properly and live within their means. Teach them to shun credit cards because of their abusive agreements and treatment of card holders. Our future will be better for it.
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