Young people under the age of 18 cannot officially borrow money. They need permission from their parents to conclude an agreement such as a loan. But that does not prevent young people from borrowing money. Budin discovered that. No fewer than 42% of the young people sometimes seem to borrow money. To take out an often small loan, they mainly turn to friends and family.
Borrow money from friends
Of the 15 and 16 year olds who were interviewed for the study, 45% said they sometimes borrow money. In three quarters of the cases they borrow from friends. This usually involves small amounts. With regard to debts, most appear to have less than € 100 outstanding. Only one in ten has more than € 100 in debt.
No loan, but debts
Young people cannot apply for a credit card or loan without their parents’ permission. There are, however, ways in which young people can get into financial difficulties. For example, from the age of 16 young people themselves are responsible for paying traffic fines. There also appear to be quite a lot of young people with debts due to high telephone bills. Although the telephone subscription is often in the name of the parents, young people have to pay the costs themselves. And they can add up considerably.
Tips to borrow money
Budin of course still has some tips for parents with regard to young people and borrowing money. To start with, the budget adviser advises parents to talk with their children about money matters. It is also good to let children practice saving and to learn how to borrow money responsibly. Should a child nevertheless fall into debt, it is better to put together a plan for paying off the debts. Children learn more from that than parents take over the blame.
You may also find the following interesting:
- Take out ongoing credit
- Beware! Borrowing money can cost a lot of money.
- Apply for a personal loan
- Take out a personal loan
- Compare health insurance policy why not your credit?
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