Most parents are looking forward to giving their children all the things they didn’t have while growing up; providing the best life they can for them. For graduation, parents like to go all out and spoil their graduate with fancy prom send offs, senior pictures that look more like professional model photo shoots and even brand new cars. The best present you can give your child is to teach them the importance of having and maintaining good credit. Credit is the one thing that most kids aren’t taught in school, and even at home. We can change that, and the change starts with you. Here are several tips you can implement to help your child have and maintain good credit:
- Start early.
- Teach the difference between a debit card and a credit card.
- Incentivize saving.
- Help them save early for a secured credit card.
- Co-sign a loan or a lease.
- Add your child as an authorized user.
- Have them report all possible forms of credit.
- Encourage them to apply for a student debit card.
It’s never too early to start helping your child prepare for adulthood, and having good credit gives them an excellent foundation to build their future on. If you’re unsure how to implement these tips or how to start, contact a financial planner for assistance.
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