Finance lessons for young people

My son just started a new job around 6 weeks ago. He didn't use his bank account for 5 or 6 weeks so he didn't check the balance or look at his statements. Big mistake. He was overdrawn by £1.27. He incurred bank charges of fifty pounds. He didn't notice and incurred another £70. Ouch.

Today he said that he has learnt a lot from this. He will check his balance daily, he will always open his statements when they arrive. If he really does learn from this then it is actually £120 well spent. He added a couple more rules of his own. No credit card ever. No loans except for appreciating assets or higher education. If you cant afford then you can't have it.

I told him to add a couple of extras; pension planning and investments.

I am delighted with this result.

Comments

  1. Ouch!! I would ask for the charge tobe refunded, it seems very harsh for being £1.27 overdrawn :(

    ReplyDelete
  2. I bounced 2 checks when I got my first checking account. I thought I was being so careful but I wasn't aware of the time lapse between deposits and the money being credited to my account. Seems money is processed out much quicker than in.

    ReplyDelete
  3. Hi Laura
    It was the amount of time that he was overdrawn that caused the problem. Daily interest rate was over £5. I am pretty sure it doesn't happen again,

    hi Daizy
    I have high hopes of him being sensible with his cash if he is copying you!!

    ReplyDelete

Post a Comment

Popular Posts