How to Teach Smart Credit Habits to Your Kids

How to Teach Smart Credit Habits to Your Kids

One day your child will be offered a credit card and it will be out of your control how they handle it. Helping them to understand about credit and teach smart credit habits to your kids is a must. Remember that all learning starts with you as their parent. Make sure that you are a good role model.

Explain why good credit is so essential. That without a good credit rating or score there are many doors that will not be open to you, such as getting a home loan, applying for a bank account and so on…even to getting an apartment in which to live could be compromised. Help to keep your kids smart and show them the way.

Use everyday situations to teach your kids valuable money lessons. Kids get their lessons when they are eager and their minds are open to the experience. For example, when you are at the supermarket checkout use the chance to explain the advantages of using your rewards card and explain the advantages of paying by cash or debit card instead of using a credit card…such as using your money as opposed to borrowing.

When at home explain how if you don’t pay the pinjaman online ojk Kredit Pintar account in full each month you could be paying off the grocery shopping you have just done well into next year. Any child can appreciate the advantages of paying just once for an item, rather than paying for the same item months or even years into the future.

Go on then to talk to them about the effects of overspending, or spending without a budget. Show them how to do a budget. And answer all their questions no matter how silly them seem.

Essentials points to explain how credit cards work:


  • When you have a credit card you are borrowing rather than using your own money.
  • The interest rate on credit cards is higher than most other debt.
  • If you don’t pay in full each month you will be charged high interest and the debt will grow.
  • If a payment is missed your credit rating suffers.


Once your child reaches the teen years there are ways to help control their spending while still introducing them to credit cards. You can get a card linked to your own with a small limit…do a budget with them to explain what sort of spending they might put on the card. If they don’t have the money to pay when the bill is due they should not buy the item. Then there are prepaid cards much like a debt card.

Trust that you have taught your kids well with some smart credit habits and help them succeed in their financial future. A future with their credit score in tact.

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