I don't think she gets it

Tonight M and I had "the talk."

No, not that talk.  The one about money and credit cards and fiscal responsibility.

Foolishly I thought she knew a lot of this stuff already.  I mean, she took Econ in high school -- don't they cover credit and APR and finance charges?  I seem to remember that she did a unit where she had to choose a job, figure out how much money she would make, and then budget so she could afford housing, a car payment, food, and other necessities, along with a few treats.  She got a B in the class, so I assumed she understood the general concept of earning, spending, saving and most importantly, living within one's means.

WRONG!  WRONG!  WRONG!  Sooo wrong.

M's credit card bill is due on the 1st.  This month the new balance she owes is over $600.  Unfortunately the amount of money in her checking account is just a little more than $300.  She also has a second bank account, but that combined balance in checking and savings is less than $50.  Clearly she does not have enough money to pay her balance in full.

So, what should she do?  What should I do? 

M worked over Christmas break and she earned a decent amount of money, some of which is still due her.  But basically she spent every penny she earned.  She paid cash for some of her purchases and indulgences, but mostly she used her charge card.  Now that the bill needs to be paid, her earnings are gone and the opportunity to earn more money is several months away.

I explained what most people have to do when their credit card balance exceeds their ability to pay it in full.  She didn't say much, but I think she understood how finance charges would increase the amount of money she owed, even if she never used her card for another purchase.  However, I don't think she had a clue how quickly her balance due would grow if she delayed paying it off.

What bothered me the most was M's assumption that her father and I would just pay what she couldn't.  She assured me she would eventually pay me back, but I have to admit that I won't be holding my breath over that "promise."  Several times this summer she wanted to buy something but she didn't have her wallet with her.  She asked me to pay for the item(s) with the promise that she would pay me back.  I have never seen any of the money that she owes me, and she has never acknowledged that she still owes me close to $200.

So tonight, against my better judgment, I did agree to pay the more than $300 that M owes this month on her Chase card.  I told her that I would keep track of how much money she owed, and I stressed that her father and I would expect her to pay us back when she is working again.

I hope M does pay us back, but more than anything, I hope she learns to reign in her impulse spending and budget her money wisely.  Even if the day comes when M has an ample amount of money, it would be nice if she was able to be responsible enough to live within her means.