Have you ever loaned anyone money for something? \u00a0It may have been the movies or even lunch. \u00a0What were your expectations on the return of that money or were there any? \u00a0Was it someone you knew well? \u00a0We all have “loaned” others money. \u00a0What if it was your family, specifically, your teenage grandchild? \u00a0What if they actually earned money from you each month and then asked you, “can I borrow $20 for the movies?”<\/p>\n
I would be interested in what your reaction would be and you can comment below. \u00a0I would also like to see how your reaction possibly changed if I shared the rest of the story with you.<\/p>\n
It is not my intention to get that personal with this. \u00a0One of my clients shared this true story with me a couple of weeks ago and it immediately peaked my interest.<\/p>\n
This child, coming to grandma, likely knew what the reaction would be – she would leave with her $20. \u00a0However, grandma is changing and told her grandchild she would have to pay her back and the teenager agreed. That is when I heard the story.<\/p>\n
My advise to grandma, since she already made the loan? \u00a0First, deduct the repayment from what the child earns next month. \u00a0Yes, this grandchild earns money for the work that she does. \u00a0However, in addition to the money owed also withhold $2-3 of interest. \u00a0That will get her attention on borrowing. \u00a0Then it hit me – withhold an additional $10. \u00a0That would make the payback $30. \u00a0I know, I heard you, you said I was “cruel” for suggesting that. \u00a0Truth is, you may be right.<\/p>\n
However, if this teenager learns about debt at her age now it may prevent her from making the same mistakes you and I have made with debt. Most of us typically learn from the pain we experience. If you and I had experienced the pain earlier, we may be much wealthier now.<\/p>\n
The extra $10 you ask?\u00a0Why would I suggest that?<\/span>\u00a0<\/span>No, it was not a way for the grandmother to \u00a0make money, but a way to teach those who think that they can borrow like the government, that there is a cost and often it can be very expensive.<\/span>\u00a0 It may keep her away from a payday loan shop in the future!\u00a0<\/span><\/p>\n If you had been grandma, or even mom\/dad, what would you have done and why? Leave your comments below.<\/strong><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Have you ever loaned anyone money for something? \u00a0It may have been the movies or even lunch. \u00a0What were your expectations on the return of that money or were there any? \u00a0Was it someone you knew well? \u00a0We all have “loaned” others money. \u00a0What if it was your family, specifically, your teenage grandchild? \u00a0What if […]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,21,4,22],"tags":[],"class_list":["post-1985","post","type-post","status-publish","format-standard","hentry","category-coaching","category-credit-cards","category-debt","category-encouragement"],"yoast_head":"\n