Youth Debt - Dealing With Money Has To Be Learned

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Youth Debt - Dealing With Money Has To Be Learned
Youth Debt - Dealing With Money Has To Be Learned

Video: Youth Debt - Dealing With Money Has To Be Learned

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Video: 10 things I learned after losing a lot of money | Dorothée Loorbach | TEDxMünster 2023, January

Youth Debt in Austria

The first apartment of their own, the first car, cell phone contracts and too many orders over the Internet - these are common reasons why people get into debt at a young age. In addition, they often have no or insufficient reserves for emergencies. Young people's indebtedness tends to increase. The temptations of consumption can have particularly serious effects on young people aged 18 and over, as they can receive a debit or credit card at this age.


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  • What are the reasons for debt?
  • High interest rates on overdrafts
  • How do I handle money safely?

What are the reasons for debt?

The reasons for indebtedness at a young age are varied. One of the most common causes of youth debt is the “cell phone debt trap”. Owning a cell phone has become the norm not only for adults but also for teenagers. Contract mobile phones are supposedly offered very cheaply or free of charge these days. Very few people know, however, that a “free mobile phone” usually entails a high tariff that has to be paid monthly. In addition, the various additional functions can add additional costs to the call costs. In order to avoid cell phone debts in the first place, it can be helpful to use a prepaid cell phone, since you cannot make calls more than the amount on the prepaid card.

Note For young people under the age of 18, a contract mobile phone can only be obtained with the signature of their parents.

The costs of buying your own apartment (e.g. deposit, commission, transfer, furnishings), your own moped or car (e.g. buying, insurance) and leisure time (e.g. going out, clothing, sports) can lead to debt. Last but not least, the lower income at the beginning of a professional career or even unemployment, for example due to a lack of apprenticeships at a young age, play an important role.

High interest rates on overdrafts

More and more young people have a youth account with an overdraft: because they have their own income or their parents have agreed to the overdraft. There is a great temptation to buy something that you cannot actually afford. How high the overdraft limit is and whether it is even possible to overdraw your youth account varies from bank to bank. In any case, an overdrawn account causes very high interest and the coverage of fixed costs is threatened.

How do I handle money safely?

Dealing with money has to be learned. Debt counseling also attributes the financial problems of young people to gaps in their knowledge of how to deal with money. For certain purchases, however, it is essential to put something aside in good time. The foundation for dealing with money is laid with the first pocket money. A regular sum of money that young people can dispose of for themselves is the best way to get to know the value of money.

Tip For parents and children about the correct handling of pocket money, go to: All about pocket money.

The state-recognized debt advisory services work in addition to advising over-indebted people in financial education. Financial literacy from an early age is the best way to avoid over-indebtedness later on.

Debt counseling understand financial education as basic financial education that imparts the skills for a healthy money life. The focus is on a basic financial education that makes children and young people fit for their everyday financial decisions and prepares them as best as possible for their financial independence as adults. The focus of financial education is working with children and young people. The materials and workshop offers are aimed at schools, but also at extracurricular facilities, at training workshops and companies.

For more information, see Financial Education.

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