Credit Canada

Question: My finances have been hit pretty hard with all the stock market activity lately and my wife and I are cutting back our spending. Meanwhile, we gave our 16-year old daughter a copy of our credit card when she started driving (in case of any road emergencies).

The ripple effects are enormous. Prime borrowers are paying higher rates and are being asked for higher down payments.

Who really budgets for the lastest fashion item or the newest piece of electronics?

I don't. And that's the problem. Few people save for the big-ticket item any more, opting to just go out and buy it, says Patricia Lovett-Reid, senior vice-president of TD Waterhouse Canada Inc.

Teach students good money management skills so when they graduate from post-secondary education they won't be drowning in debt.

Ever heard this remark?, "Mama, don't let your babies grow up to be credit junkies." or how about: "Why do kids these days think moneygrows on trees."