Make Sure Your Kids Are Conscientious About Credit

Thursday, December 8th, 2011
Updated: December 8th, 2011
The content is accurate at the time of publication and is subject to change.

It’s never too soon to begin teaching your children how to be good money managers. Financial education begins at home and in order to give your kids a head start towards becoming financially responsible adults you should take every opportunity to teach them the importance of saving, not overspending and using credit cards wisely.

It all boils down to a budget.

The most important element of keeping a household on the right financial track is to establish a workable budget and stick to it. Involve your children in the budgeting process by sitting down with them and outlining their own budget based upon their allowance or income from babysitting or other part time jobs.

Start saving.

Open up a bank account in your child’s name if they do not already have one. A savings account can be started at most banks for as little as $25. Impress upon your child how important it is to put aside a portion of their paycheck (allowance, birthday money or other income source) for savings on a consistent basis. Teach them how to establish savings goals and incentivize them reaching certain benchmarks by rewarding them with an additional saving boost from you once they have saved up a specific amount.

If you have a teenage child, some banks offer checking accounts which are designed as a teaching tool for teensto learn good money management skills. All that is required to open one is that a parent co-sign. A checking account is a good way to get your child into the habit of accounting for all of their deposits and withdrawals throughout the month and then balancing their account. This will pave the way for them eventually opening their very own credit card account.

Show them how to shop smart.

Teach your children to avoid making impulsive purchases when shopping. With so many elements of the shopping experience geared towards enticing consumers to spend, such as ads, discounts and sales, it’s all too easy to be lured into buying unnecessary items. This is especially true if you have a credit card at your disposal. Teach your children that buying on credit is borrowing money that must be paid back, and that there are real consequences involved. Get into the habit – and pass it along to your children – of waiting 24 hours before making a big purchase. This gives enough time to really think about whether or not the item is truly wanted, needed or useful. In order to learn how to save, children first must learn how to wait. The seeming instant gratification that a credit card can provide must be addressed and debunked.

If you teach your children how to handle money and credit in a responsible, thoughtful manner, you are giving them a precious skill set that will aid them well into their adulthood.

All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.

Latest Other Card Guides

Maxing Out Your Credit Card: What to Expect When You Go Over Your Credit Limit? January 26th, 2024

When it comes to obtaining а new line of credit, whether it’s a credit card, personal loan, mortgage, or any other way to borrow money, one of the most crucial aspects is the credit limit. Credit limit is the maximum amount you can charge on a particular credit card or other type of credit account. […]

Continue »
How to keep your money safe? Common types of bank accounts November 16th, 2023

Bank accounts offer a convenient and secure place to store cash and build savings. Savings and checking accounts are the most well-known types of bank accounts, but there are actually other options that financial institutions commonly offer. There are different types of bank accounts that can fit specific needs. Apart from Checking and Savings Accounts, […]

Continue »
The best alternative to payday loans: a Paycheck Advance Apps overview September 26th, 2023

If you need to make ends meet before your next paycheck, fast cash options like payday loans or installment loans are not your only options. Paycheck advance apps have been booming in the financial services industry in recent years, and the idea of an app that allows you to borrow money with low or no […]

Continue »
How to cope with the over-budget holiday debts? December 28th, 2022

The holiday season is a time when many Americans spend big on dearest friends, relatives, and themselves. During the festive fuss and buzz, it’s easy to fall into the urge to spend and buy more than you can afford. However, if you don’t want overspending to set you back financially in the new year, here’s […]

Continue »
What Are Electronic Payment Methods and How Do They Work? October 10th, 2022

If you frequently make online payments but remain concerned about your sensitive bank account details, virtual credit card or digital wallet services can give you the added layer of protection you need. A virtual credit card (VCC) is an online only version of your debit or credit card. It’s not a physical card, but a […]

Continue »
Best Credit Offer
Destiny Mastercard®
Check off the cards you want to compare. Then click the Compare link to go to the comparison table.
Consumer Rating: 4 / 5
Horizon Card Services Group One Freedom Card
Copyright © 2001-2024 BestCreditOffers.com All Rights Reserved.

*See the credit card's terms and conditions on the online application page. Note that this website may be compensated by credit card issuers when the visitor applies for a card through the links on this website. We do our best to maintain all information accurate and up to date. However, we do not warrant the credit card information won't change. Click the "Apply Online" button and review the current info on the secure credit card terms page.

Information in these articles is brought to you by BestCreditOffers.com. Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles.

The BestCreditOffers.com webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. BestCreditOffers.com does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the BestCreditOffers.com website are property of their respective owners.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer. Opinions expressed here are the author's alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. Reasonable efforts are made to present accurate info, however all info is presented without warranty. Consult a card's issuing bank for terms & conditions.

BestCreditOffers.com makes every effort to keep information up to date and accurate. However, the information regularly changes and is presented without warranty. Therefore, we strongly recommend all our readers to visit the credit card application page by clicking "Apply Online!" button to review the detailed credit card's terms and conditions. Note that BestCreditOffers.com may be compensated by the credit card issuers when the readers apply for a credit card through this site.

BestCreditOffers.com is an independent, advertising-supported website which receives compensation from the credit card issuers and companies whose offers appear on the site. Compensation may impact how and where products appear on our site, including, for example, the order in which they may appear on the site pages. BestCreditOffers.com does not review or list all available financial or credit offers.

You've successfully subscribed!

Please specify the following:All these fields are optional

Thank you for providing this information! We will make sure our letters are useful for You.

User Generated Content Disclaimer: These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.