I think it's time to start teaching my son about finances

Cody and I just finished watching a documentary called Maxed Out. It was about the credit crisis circa 2006. It detailed a few stories where people were under so much pressure to get the bills paid they actually committed suicide. In particular, I was effected by the stories of two different college students with similar plot lines. I was aware that credit card companies were taking up residence on college campuses and signing students up for cards, I just didn't realize how predatory the practice is. 18 year old students, not knowing anything about money yet, without credit histories and without jobs, are given credit cards with ridiculous limits. They then do what kids do and go a little crazy with them. Before they know it, they are in debt up their eyeballs and have no idea how to get out of it.

In general in our family it has been our practice that we try to keep the kids out of our financial business as much as possible. Being children, we really don't want them overburdened with adult concerns. They have the ability to earn an allowance, which they have to work for, and then they are allowed to spend their money pretty much as they wish. If they earn money outside the home, it's our rule that half of that money goes into their savings account, which they will then have access to when they turn 18, the other half is theirs to do as they please with. I thought we were doing pretty well with teaching them about being responsible with their money until I saw this movie. I realize now that I totally missed the credit angle.

Our oldest son is 16, and we're thinking it may be time to have him learn exactly what it takes to keep a household financially afloat. I think for our younger two, what we are doing already is fine, but at 16, Christian will be on his own in two years at the most, if he gets into Job Corps, it will be less than that. I want him to go into self-sufficiency with his eyes open. I will show him the money we earn, where it goes, and why we never seem to have any. I will do my best to explain the responsible use of credit, how you can use it and how it can use you if you're not careful. I don't want him to end up in a hole wondering what happened.