A guest post from a father and teacher, Damian M. Idiart
Amongst the many hats that I wear, I’m a father and a teacher. “Research your top three choices for post-secondary education and answer the following questions…” These were the instructions that my Career Exploration students at my online public charter high school were given for their mid-term portfolio assignment.
I was completely surprised at the results of the writing projects. The majority of my students paid little attention to the astronomical tuition prices their undergraduate degrees would cost. They overwhelmingly replied: STUDENT LOANS!! Almost without exception they answered that they would simply finance most, if not all, of their education through loans.
When I was decided what school to go to I worried about scholarships, part-time jobs, and even passing on the most expensive schools for a local community college. Student loans were my last option; not my first. And that was in the day when schools cost a fraction of what they do now.
Perhaps this was a reflection of the demographics of the particular school I taught at, instead of normal kids, from normal families? So I decided to ask my own five children the same questions, albeit less formally, to find out their plans for paying for college. And to my utter astonishment their answers were absolutely consistent with my students — “We will just get STUDENT LOANS.”
That is when I began my personal crusade to educate my students and my own children about the realities of compounding interest and the potential pitfalls of debt. Don’t get me wrong, I understand that there are legitimate reasons to incur debt. And one of those reasons can be education. But this generation simply accepts the burden of debt as the norm and this has become a socially acceptable solution to financing degrees. I can’t help but feel worried.
What should a teacher do? I created a lesson all about debt of course! We studied student loans, credit cards, auto loans, home loans and all other consumer debt. I showed my students (and you better believe my own kids) the difference in the amount of interest paid on a 30-year mortgage versus a 15-year mortgage. We analyzed the amount one pays over umpteen years when one chooses to only make the minimum payment on a credit card balance. And we broke down the meaning of deferring student loans for years while searching for the best jobs one can get.
I saw something miraculous happen in my role as a teacher and as a father. These intelligent young men and young women understood debt for what it truly is. They decided that they wanted to earn interest instead of pay interest. And little by little they adjusted their future plans to square with responsible money decisions that would lay a foundation of financial freedom.
As an avid technologist and money thinking parent and teacher, I signed up for Pennybox because it has a mission to teach kids money. That is work I support. We can steer young folks away from a future shackled by ignorance of money and create money-savvy entrepreneurs. That is worth teaching, to my own kids and students.
Thanks for reading. My most recent venture is one that makes working from home more enjoyable and productive for all: WFHAdviser.com. If you’re interested in connecting you can reach me there.
