Counsel Your Kids on Credit Cards

Before your kids turn 18 and head out on their own, whether it is to college or to a full-time job, be sure to spend some time talking with them about credit. The financial freedom of credit cards may seem appealing to your kids, but without the skills to handle credit cards, your children may be getting in over their heads.

Every parent can set a good example for their kids. Your kids listen to you and watch your habits more than you think. If you handle credit cards and spending responsibly, chances are, your kids will notice and do the same.

A technique to help teach your children about credit is to tie them to your account. When your child is 15 or 16, consider adding them as a user on your credit card. Your child will inherit your credit rating, which will set them up with a better score when they turn 18 and leave the house. You can also set up a system where they are allowed to spend a certain amount of money per month, and you can keep track of the charges. If they stray past their budget, they will learn the hard lesson of carrying a balance and paying interest charges.

Lastly, get your kids a credit card before they leave home. That way, you can help them shop for the best card, and request that the limit be set low, say $500 or $1,000. That way, they will be less tempted by all the card offers they undoubtedly will be bombarded with at college. These tips should help give your kids financial freedom without falling into the trap of credit card debt.

If you want to help your kids learn about credit, apply for the Heritage Credit Union Platinum Visa today! Simply apply online and enjoy the convenience and power to purchase with your new HCU Visa.