| If you are a parent, one of the major | | | | misuse of these tools, which can hurt them |
| responsibilities you have to your children is to | | | | greatly in the future. Good credit only is possible |
| make sure they are ready to enter the adult | | | | for adults who are responsible with their money. |
| world when they leave the nest. This includes | | | | Instead of allowing your child to have a credit |
| financial know-how, although most parents do not | | | | card to use all the time, instead have them keep |
| consider speaking with their child about credit and | | | | one card in their name for special occasions or |
| debt until it is too late. If your child is old enough | | | | emergencies. If they start to misuse this card, |
| to make and spend money, they are old enough | | | | cut it off immediately. Rather than keeping a |
| to understand the basics of good credit and its | | | | credit card, allow your child to speak with you if |
| importance, so you should speak with your child | | | | they feel like they need money in advance and |
| regularly about this to help them prepare for the | | | | be open to their ideas. |
| future. | | | | Lastly, you can help your child build credit by |
| Most children receive some form of allowance | | | | putting one of your own bills in his or her name. A |
| from their parents. If this is an option you choose, | | | | small utility bill is a good option for this type of |
| you are helping your child learn the first step to | | | | deal. You child does not need to pay off this bill |
| creating good credit-managing money. Teach your | | | | every month by him- or herself, but rather, it is |
| child the basics of budgeting, such as how to | | | | simply a way for your child to build good credit, |
| balance a checkbook, when they are of an | | | | and since you have to pay the bill monthly |
| appropriate age. Also help your child open a saving | | | | anyways, it doesn't make a difference who's |
| account to start saving money for the future. | | | | name it is in. You can get your child involved in |
| Even if the bank account never reaches a larger | | | | the process by having him or her remind you |
| balance, it still teaches your child the importance | | | | when the bill is due every month and keep record |
| of saving for the future. | | | | of the payments. This teaches good habits for |
| Credit cards are difficult for most children to | | | | the future, and getting into the habit of |
| manage, so it is in rare cases that a teen should | | | | maintaining good credit is the most important |
| be allowed to have one, especially one which you | | | | thing at this stage. You can protect your child |
| pay off every month. Unless you intend to do this | | | | from debt in the future by teaching him or her |
| for the rest of your life, paying your child's credit | | | | these lessons while still living at home. |
| card bills or other debts leads to irresponsible | | | | |