Teaching Your Kids About Credit

When you are teaching your kids to use credit properly and effectively, you are not teaching them to not have credit. Nowadays a credit card is just as essential as a car or cell phone. Some people believe that sending your child out into the world without a credit card, or a respectable credit rate already building, plus the knowledge and training on how to use credit is just is an irresponsible parent. It is just like sending your child to war with no weapons to use. Credit is needed to succeed in this world.

One way to teach your kids to be responsible with a credit card is to get them a credit card when they are in high school or college. Even though you will pay the bill it is a good way for them to pay for the stuff they need. You will also be able to keep track of what they are buying from your monthly bill. With the credit card in your children's name as you pay it off you are building your child's credit rate.

One thing to remember is to not let your child go out and max the card out the first day they have it. You can establish a credit limit that they can not go above. If they max it out and find that they can not buy lunch that day, you will be teaching them more than spending days lecturing them.

Make your children do three thing for you to show you that they are mature enough for the card.(1) Tell them to save every receipt of their purchases. (2) They are going to have to keep a ledge much like your check book of all their purchases. (3) They must also sit down with you and review the bill when it comes in.

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