This weekend I was talking to one of the new neighbors who had just moved in a week or two ago. We chatted about the great fall-like weather we were having and how great its timing was for his moving in - mostly small talk, getting to know you kind of stuff.

As we were talking, his son walked up to the conversation. His dad introduced him. He said hello, and in the single-minded way only kids can truly master, asked his dad if he could borrow $50 for a new skateboard.

Michael's dad replied with some of the most sage debt management advice I've heard:

You shouldn't borrow money for things you don't need.

The more I thought about it the more I saw how well this simple rule for debt management applies. Since that conversation I have not been able to think of a situation where smart debt management would lead me to borrow money for something I merely wanted, but didn't actually have a need for.

To someone like me, debt management advice like this just makes sense. It completely and succinctly captured the spirit of how I think about taking on debt. For Michael it wasn't this simple. So his dad explained further that borrowing for something you don't need, but merely want, diminishes the good feeling you get from buying it. The gratification you receive from new toys - whether that toy is a skateboard or a boat or a new home theater system - won't last as long as it takes to repay the debt. When the good feeling of owning a new toy you didn't need in the first place is gone, all that's left is a loan to repay.

I think Michael's dad and I are going to get along very well. I can't help but wonder how many more great personal finance lessons he has in his repertoire.