A study conducted by researchers at the University of Wisconsin at Madison and Dartmouth found that children whose parents had high levels of bad debt, like credit card or medical debt, had lower levels of socioemotional well-being. Being in debt can place crushing financial burdens on parents, but it can also have damaging psychological effects on the children as well. The study differentiated bad credit-card debt from good debt like mortgages. People should prioritize their expenses and only charge what they know can be paid off. It is also important not to go overboard on the good debt and to place careful limitations on the amount of total debt that is built up. Getting advice and assistance from an experienced estate planner is a good start for people looking to reduce their debt and change their spending and budgeting habits.
See Maurice Backman, Here’s How Your Debt Can Harm Your Children’s Happiness, My San Antonio, February 21, 2016.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
