#gooddebt

[georgemark099]

Why It’s Important for Kids to Understand Good Debt and Bad Debt?

Financial literacy is a vital life skill, and teaching children about good debt and bad debt early can set them on a path toward responsible money management. These concepts may seem complex, but breaking them down into simple lessons equips kids with the tools to make informed decisions in the future. Here’s why it’s crucial for kids to understand the difference between good debt and bad debt.

Understanding Good Debt

Good debt refers to borrowing money for purposes that create long-term value or generate future income. Examples include taking a loan for education, starting a business, or purchasing a home. These investments often pay off over time, helping to build assets or improve financial stability. By learning about good debt, kids understand the idea of borrowing as a tool to achieve goals, provided there is a plan for repayment and the investment has potential benefits.

For instance, a story about a teenager saving up to start a small business but needing a loan to cover the initial costs can illustrate the positive impact of good debt. Kids learn that borrowing responsibly can help achieve bigger goals when done thoughtfully and with a clear purpose.

Understanding Bad Debt

On the other hand, bad debt involves borrowing money for things that don’t offer long-term benefits or value. This includes spending on unnecessary items, luxury goods, or experiences that are quickly consumed and forgotten. Credit card debt is a common example of bad debt when it’s used to finance impulsive or extravagant purchases without a plan for repayment.

Teaching kids about bad debt can involve examples of how overspending can lead to stress and financial trouble. Through stories or real-life scenarios, they can learn that borrowing money without considering the consequences may lead to difficulties in the future.

The Importance of Financial Responsibility

By understanding good debt and bad debt, kids can develop a sense of financial responsibility. They learn that borrowing isn’t inherently bad—it’s the purpose and management of debt that matter. These lessons help them think critically about their spending habits and the long-term consequences of financial decisions.

For example, a child who understands the difference might save their allowance for something meaningful, rather than borrowing to buy a toy they don’t truly need. They also grasp the importance of budgeting and the value of saving for future goals.

Building a Foundation for the Future

Teaching kids about debt prepares them for real-world financial challenges. As they grow older and face decisions about student loans, mortgages, or credit cards, they’ll be equipped to make informed choices. Knowing the difference between good debt and bad debt helps them avoid common financial pitfalls and build a secure future. Teaching them these concepts early, such as through a good debt bad debt book, sets a foundation for responsible money management.

[canajunfinances]

Good Debt? Not Bloody Likely....

Good Debt? Not Bloody Likely

Given the drop in Interest Rates, we will start hearing about #GoodDebt again. Borrow money, it's cheap as the default advice. Don't fall for it. Debt is a tool, like a chainsaw, which needs to be respected.

[elliottfinancialconsultants]

Not all debt is equal. Some types of debt are more harmful to your financial security than others. Often, we associate debt with poor financial decisions that hurt your financial plan. But there’s such a thing as good debt and bad debt. Having a financial coach can help you make better financial decisions by showing you how to tell the difference between the two and how to tackle them. If you’re unsure about how to approach your debt (good or bad) you don’t have to tackle it alone. Call Wayne Elliott at 519-220-0557 for a strategy that may help benefit you in the long term and make sense of your financial picture. http://bit.ly/35fI6PN

[realestatetroy]

Quality is all you will get from me when I’m listing your property.

My name is Troy Amaro. I’m a licensed Realtor in Las Vegas NV. Being a Realtor I’m held at a much higher level of ethics and standards than a normal sales agent.

I have studied Robert Kiyosaki and Grant Cardone extensively, and thank them for my knowledge in financial literacy. My new recent favorite books are Think and Grow Rich by Napoleon Hill, The BRRRR book by David Greene from BiggerPockets, B.O.B.A and 10X by Grant Cardone, of course Rich Dad Poor Dad and The Real Book of Real Estate by Robert Kiyosaki.

I will help my clients list their homes for the right price to sell in whatever market we are currently in. Doing so, it will greatly eliminate the waiting game and lower the Days On Market that every seller dreads.

You can find some listings at my site here www.amarorealtynv.com

Register now and let me know how I can work with you to get you too dollar for the lowest amount of time.

[blogannaqueentuttus]

Why ?? #blackhomeownership matters? Join Associated ReaL Property Brokers Oakland and CAREB - California Association of Real Estate Brokers tonight for #dynamic panel discussing “Why Black Honeownership Matters”  Registration link: https://www.eventbrite.com/e/141055602103 #experts #studentloans #lendingproducts #BuyingBlack #GoodDebt #baddest #renters #askaRealtist #Careb #realtistnation #californiarealtist #larealtist #AnnaQueenTutt https://www.instagram.com/p/CLuFM0GrzIh/?igshid=fvz8sh3ssjwz

[investsteer-blog]

Make sure you understand the difference between good debt and bad debt. Say no to BAD DEBT. #avoiddebt #debtfreecommunity #debtfreejourney #debtfree #debt #debtsnowball #debtfreegoals #debtfreedom #debtisdumb #gooddebt #baddebt #debtfreelife #debtsucks #debtfreeliving #debtpayoff #investsteer #investorshub #investmentopportunities #investmentstrategies #investmentopportunity #investmentproperty PC - Aidan Bartos (at Chennai, India) https://www.instagram.com/p/Bwoc1_Cn58y/?utm_source=ig_tumblr_share&igshid=st3vvy2rujr3

[princesslenii]

Business ownership is a good debt people! . . . . . #debtfreejourney #debt #gooddebtvsbaddebt #gooddebt #baddebt #vs #worksmartnothard #worksmart #educate #knowledgeispower #learn https://www.instagram.com/p/BwDVXCpHTSc/?utm_source=ig_tumblr_share&igshid=tukhopbzspsf

[georgemark099]

Why Every Parent Should Discuss Good Debt and Bad Debt with Their Kids?

Teaching kids about good debt and bad debt is essential for building their financial literacy. Understanding the difference helps them make informed choices about borrowing and managing money responsibly. Parents can use good debt and bad debt books to simplify these concepts, empowering children with the knowledge they’ll use for life. Early discussions on debt foster smarter financial decisions, ensuring a solid foundation for future success.

[adityapartapsinghdalal]

#Repost @businesstutorship (@get_repost) ・・・ Do you think college loans are good or bad debt? 🤔 - I’m genuinely interested to hear your opinions below, as it’s a highly discussed topic. Also, the main reason people go into bad debt is usually due to being stuck in a consumer mindset. You must break that 👀 - - - - #gooddebt #investing #savingmoney #moneysavingtips #budgeting #savings #Financialfreedom #financialgoals #wealthbuilding #millionairemindset #everydaymillionaire #millionaire #minimalism #debtfreegoals #payoffdebt #entrepreneurship #abundancelife #successtip #entrepreneurial #givemore #internetbusiness #beyourownboss #realestateinvestment #privatemoney #garyvee https://www.instagram.com/p/Btv-xTZA7XR/?utm_source=ig_tumblr_share&igshid=18ddhlvicj70m

[whatworksinfo-blog]

Money is an idea. The way you think of it is the same way it's reflected in your life. Choose the way you think of it. . . . . . #money #millionaire #mindset #credit #advice #hustle #workhard #Entrepreneur #gooddebt #baddebt #creditrepair #master #education (at North Miami Beach, Florida)

[100xgain]

#compoundinterest #valuation #passiveincome #gooddebt #save #invest #learn #unlearn #relearn #financetips #finance #personalfinance #moneytips #money #financialindependence #financialfreedom #usa #india #uk #canada #thoughtoftheday #thoughtsforlife

[sethbkajang]

No debt is encouraged in the Bible except the debt of LOVE ❤️ #SethBKajang #Biblevation #bible #christian #love #gooddebt #gooddebtvsbaddebt #debt https://www.instagram.com/p/B-YLjS2HAsj/?igshid=1wumt8zln62o0

[devanwickline]

View this post on Instagram

A post shared by Devan Wickline (@devanwickline)

Today I’m talking about DEBT... the good and the bad. If you’d like to learn more about leverage just message me. #GoodDebt #BadDebt #opm #otherpeoplesmoney #banks #leverage #property #propertyinvestment #entrepreneur #businessowners #payinfull #deposit #melbourne #sydney #adelaide #perth #brisbane https://www.instagram.com/p/Bnk-IIqAL-g/?utm_source=ig_tumblr_share&igshid=19z9btann0i94

[facondevie]

“‘Good debt’ is typically defined as debt used to finance something that will increase in value in the future. Mortgage debt is a classic example: You get a mortgage to buy a house today, and in 30 years, when you've paid off that mortgage, the house could be worth two or three times its purchase price. Other examples of good debt include student loans (because getting a degree vastly improves your future earnings) and business loans (because putting money into your business allows you to expand and increase future profits).

The beauty of good debt is that it's essentially an investment, just like a stock or bond. You're spending money now in the expectation of getting your money back, and perhaps some profit on top of that, at some point in the future. And because you're spreading the payments out over many months or years, you can buy the item you're financing immediately instead of having to wait and save up enough money to buy it all at once. On top of that, good debt tends to carry a relatively low interest rate in the single digits.

Bad debt, on the other hand, finances something that will not return your investment. Consider your car loan: If you borrow money to buy a brand-new car, then the moment you drive it off the lot you've lost a big chunk of its value, and yet you're stuck with paying the initial price, plus interest. Get a $25,000 car loan, and the car may be worth $15,000 or so by the time you've cleared your debt load. Meanwhile, if you spent $25,000 on a stock that ended up being worth $15,000 five years later, then you'd consider that a horrible investment.

That said, a car loan is actually a pretty benign example of bad debt, because you'll be able to use the car during and after your loan repayment period. You may be overpaying for the use of a car, but at least you're getting some value out of it -- especially if you need the car to commute to work.

A far worse example of bad debt is credit card debt. Credit cards are rarely used to finance anything that will return its cost to you. On top of that, the interest rates are staggeringly high -- sometimes above 20%, versus the single-digit rates of most other forms of debt. If you don't pay off your balance in full each month, then the interest payments can quickly get out of hand.”

These are common examples of what are considered to be good debts and bad debts. Some say that all debts are bad and that it’s much better not to have any debts at all, but it’s unrealistic since not that many people have enough cash on hand to purchase a car or a home. Regardless of what type of debt it is, if any debt goes unpaid the interest will pile up, your credit score will go down, and it’ll leave you in a poor financial position.

[phungthaihy]

How To Invest With NO MONEY Down: Turn $0 Into Infinite Returns -Robert Kiyosaki (Millennial Money) http://ehelpdesk.tk/wp-content/uploads/2020/02/logo-header.png [ad_1] There are two different ways to ... #accounting #algorithmictrading #cfa #daytrading #excel #finance #financefundamentals #financialanalysis #financialintelligence #financialmanagement #financialmodeling #financialtrading #forex #gooddebt #howtobecomeamillionaire #howtobuyyourfirstdealwithnomoney #howtoinvest #howtoinvestmoney #howtoinvestwithnomoney #howtomakemoney #infinitereturnsrobertkiyosaki #investwithnomoney #investing #investingwithnomoney #investmentbanking #millennialmoney #nomoneydown #nomoneynoproblem #nomoneynoproblems #optionstrading #otherpeoplesmoney #personalfinance #realestateinvestingwithnomoney #richdad #robertkiyosaki #stocktrading #technicalanalysis #therichdadchannel #therichdadchannel

[monoperty]

Repayment Or Interest Only Mortgage | Good Debt vs Bad Debt | Buy To Le...