Teach Your Teen About Credit: It’s Not Too Soon
The Internet is full of information on credit, but there’s a lot of misinformation that your teen could come across while doing independent research. It’s important that your teen has a firm grasp on credit before going off to college or into the workforce. It’s imperative they know the impacts credit could have on them in the future. As you know, your teen’s credit score can have a major impact on his or her life in the future. It can affect your teen’s ability to obtain a loan, mortgage, or even impact his or her future employment. So, how do you explain credit to your teen? This post will provide you with 7 credit tips for teens.
7 Credit Tips For Teens
- Credit Tips For Teens: Make Sure They Understand The Importance Of Their Credit Score
From report cards to SAT scores to sports stats, teens are well aware of how numbers represent accomplishments and responsibilities. It’s important to explain credit in a way yourteen can understand. Make sure they understand that their credit score has a major impact on his or her ability to get necessities in life such as a house and a car. Putting real-life examples behind credit can keep your teen’s interest, and make them feel like credit really does apply to them.
- Credit Tips For Teens: Stress The Importance Of Paying On Time, Every Time.
It’s important your teen understands that credit cards aren’t free money. Just because they are not paying the money up front, does not mean they don’t have to pay it back at a later date. Emphasize the importance of making payments each month, and explain to them the negative effect late payments can have on their credit score, and how this could impact their future.
- Credit Tips For Teens: Explain Minimum Payment
Make sure your teen understands that making only the minimum payment on a credit card will result in interest charges. Provide your teen with an example. For instance, would he or she rather pay $20 for a shirt now or $25 for it later? This will help them understand that making only the minimum payment each month makes their purchases much more expensive in the end.
- Credit Tips For Teens: Teach Them To Not Spend More Than They Have
One of the fastest ways to get into credit card debt is to spend more money than you have. Help your teen understand the importance of not over spending, and teach them how to differentiate need from want.
- Credit Tips For Teens: Responsible Credit Card Use Helps Build Credit
Explain to your teen how lenders use credit score to approve or decline loan requests. He or she will understand that a higher score correlates with a higher chance of being approved for a loan. Make sure they understand that credit takes a while to build, and emphasize the importance of practicing smart spending now.
- Credit Tips For Teens: Teach Responsible Online Usage
In our digital world, online shopping is an everyday activity for many people. Educate your teen on where they should and should not use their credit card online. For instance, advise your teen to never enter his or her credit card information on a checkout page that is not secure. He or she will be able to tell if the site is secure by looking for https:// instead of http://. In addition, secure sites will have a little padlock icon before the URL. Also, make sure your teen knows not to enter his or her credit card information while using public Wi-Fi. This would include teen hot spots like the mall, coffee shop, school cafeteria, etc.
- Credit Tips For Teens: Teach Your Teen Responsible Debt Isn’t Bad
Help your teen understand that credit and debt can help people make investments that they could not afford otherwise, such as a car, house, home repair, or even college education. Help you teen understand that responsible debt not necessarily a bad thing.
Resources To Teach Your Teen About Credit
- Are Store Credit Cards Worth It?
- How To Avoid Falling Victim To An E-File Tax Scam
- Introducing The HomeAdvantage® Home Buying Center
- The Top 6 Laid-Back Travel Destinations For Summer 2018
- Warning Signs Of Child Identity Theft
- Used Car Buying Guide
- 10 Tips To Protect Your Identity In 2018
- Are Free Checking Accounts A Thing Of The Past?
- 9 Signs That Your Debt Is Taking Over Your Life
- Getting Pre-Approved For An Auto Loan Will Save You Time & Money
- Understanding Credit Card Interest Rates & APR
- 10 Ways To Save More This Holiday Season
- We’ve Increased Our Minimum Pay
- 15 Ways To Avoid Buying A Flood Damaged Car In 2018
- 5 More New Features Of Our Digital Banking Suite
- 5 More Features Of Our New Digital Banking Suite
- New Digital Banking Suite Coming Fall 2017
- Vacation Booking Mistakes
- 12 Savings Tips For Summer 2017
- Understanding A HELOC Loan
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015