Skills on using credit and private student loans
The risk of not teaching decision-making skills on private student loans
Children that attend private schools often have a unique and preferential treatment in terms of caring and protection from their family members as well as their teachers. Private school students will have additional benefits such as special courses and custom designed classes that will provide them the necessary elements to give them a head start in the adult and financially active world.
The pampering that occurs in this private and secluded world can be either a good or a bad thing especially in terms of overall performance and behavior of the student in the world beyond the comfortable walls of this pampered ambiance. The pampering that most parents of the students that attend private schools provide and procure for their children also restraints their overall participation on the decision-making that actually affects their life with the false premise that deciding by themselves will actually cause them grief, stress, and unwanted nervous illnesses.
What this will cause is that wealthy families will in turn hire additional personnel that will make most of the vanity or innocuous decisions for the children instead of letting the children make their own first decisions. As the child grows and his or her world experience increases, the human nature starts to kick in and they start making their own choices in their own world; but since their parents still keep them isolated in a pampered world, the choices they make are hidden from their parents and more often than not, are poor choices.
A wide and known example of this is rich children whose lives are publicly scrutinized in the mass media publications. There are countless examples of rich children that are making poor decisions based on gossip, innuendos, and blatant passion instead of an informed opinion. Wealthy families require that their children have top class schooling since eventually they will have to take the lead of family businesses, corporations, companies, and even conglomerates.
Therefore, keeping the children protected and unaware as well as unprepared to make their own decisions will only cause them to loose ground on the real, economically active world where they can be preyed upon by those who had to have private school student loans but were schooled on the art of decision making.
Regardless if a student needs or not to have a private student loan, a very elementary and basic skill that they families need to provide to them is the ability to make their own decisions.
March 5th, 2009 at 2:28 pm
TWO TYPES on student loans, Federal and PRivate
March 5th, 2009 at 6:42 pm
Students can easily learn proper financial usage when it comes to their Student Loans. Be prepared , educated and involve parents from the beginning. No need to feel akward about it. Learn and increase you skills in utilizing credit and student loans as a toll to create a strong credit profile..
August 9th, 2009 at 5:24 pm
I understand that FICO 08 will weigh the account balances more heavily than the previous FICO versions. It use to be a 30% weight