When you’re in middle school, your earning potential is relatively low. You’re too young for a part-time job but too old for a lemonade stand. So saving money for big-ticket purchases is going to take some time. 

This is why you should consider borrowing. Ask your parents to loan you the money for what you want to buy. If they agree, draw up a detailed payment plan for how and when you’ll pay them back. 

Build a good reputation for paying back money you borrow by sticking to your payment plan and establishing a backup plan for what you’ll do if you fall behind on payments. This way your parents will be more likely to lend you money in the future. 

It’s also good practice for when you get older. 

Borrowing doesn’t change too much when you’re an adult—there are just more elements involved. Borrowing money from your credit union is pretty easy:

  • When you turn 18 you can submit a loan application on your own. You’ll provide your account and income information and the reason you are applying for a loan.
  • The credit union loan officer looks at your credit report, any debt you already have, your income, and your other expenses. This helps the credit union lender decide if you’re worth the risk.
  • The credit union lender decides whether to lend you the money based on what he or she finds.

Borrowing and paying back according to plan is easier than you think. Once you’ve found someone to borrow from and establish your payment plan, guess what? 

That iPad you have been wanting forever is within your reach! All you have to do is use your resources wisely, be smart, and follow through.

Now you’re a successful borrower!