Dr. Riedy's Random Thoughts

(The Calculation of Credit Scores may be Nuanced, Subtle, Counter-Intuitive) Dear Readers: Please treat this essay as a post-script to my recent essay targeting young adults and their need to understand credit scores. In part from your feedback to the original essay and in part from recent experience with a change in my own credit score, I firmly believe the topic needs to be understood better by all adults, not just young adults. Moreover, there are elements of the calculation that are subtle, nuanced and counter-intuitive, so much so that I strongly recommend parents and grandparents not only share the original essay with children and grandchildren but also review the material in that essay AND in this essay one-on-one with them. Expecting a child or grandchild to comprehend credit scores and how/why it will affect them without hand-holding is quite likely expecting too much. Without your direct help, children and grandchildren probably won’t “get it”. The day I sent readers the ...

With Delta and other variants lifting their ugly heads, a military disaster in Kabul, a huge hurricane in Louisiana and wildfires raging out of control in the Western United States, for my wife and me our greatest refuge and source of joy is our family, immediate and extended. We treasure every moment with them. Last Sunday was one of those family days filled with joy and laughter. Even as we partied, however, stirring in the back of my mind were fears we are nowhere near containing mutations of the COVID-19 virus in this country. I fear the great family times like I will describe briefly below may be at risk again in the future. Late Sunday morning, 13 (immediate and extended) family members gathered at our home to celebrate “birthday palooza”, co-celebrating four June - August birthdays simultaneously rather than stringing them out. A delicious brunch, followed by chocolate cake with individual candles on each slice (COVID precautions), and birthday gifts made for a happy day despi...

If I had used the title with Credit Scores first, I would have lost half of my readers before the end of this paragraph. And yet I firmly believe a parent-child discussion of credit scores, especially if the child is 18 +/- years of age, or irrespective of age is just beginning to use credit cards, is second in importance only to “the talk” about the birds and the bees. Also, it is less awkward. Moreover, the credit score discussion is especially crucial if the young adult is heading off to college or a junior college as an incoming first year student—away from parental oversight and where there are at least two great opportunities for them to screw up. First, flunk out of school. Second, fail to manage the payments on their two or more (probably recently new) credit cards properly and/or to make their apartment rent payments in full and on time, if they live off campus. Such a failure is the equivalent of flunking out of the financial system almost before you get into it. Many adult...