Most of us had our first encounters with credit around 18 years old, when we first set out to begin the journey of our lives.
We were either entering college, staying with room mates or even still at home.
Most of us had no incomes, and what little income we did have was as stable as we were mature! We got tons of credit card offers in the mail, and used no discretion when applying for the little pocket book that was available any time we wanted it.
As parents, we want the best for our children, and that includes providing them with the best start in their financial lives.
What if I told you that it was possible to have built 17 years of excellent payment histories, with excellent credit scores to boot, BEFORE we went to college? What would it be worth to start your children and grand children's lives with excellent credit and the opportunity to be knowledgeable about credit as minors? The opportunity to do that is now.
Follow these steps to create excellent credit for your children and help them begin their life journeys with everything they need: 1.
Make sure you're following the proper credit rules by developing your credit first.
The habits that we adopt ourselves are also adopted by our children, so it is important that we are using the right habits and schedules to create excellent credit in order to pass those habits on to our children.
2.
Add your children to your credit card.
When you have excellent credit habits, adding your minor children to your credit card at a young age will give them years of consistent, excellent payment histories and excellent credit scores.
3.
Play games with your children to make them familiar with proper credit use.
Children love games and being interactive.
Reality based board games that allow children to use money and credit to create excellent credit will prepare them for using credit when they become older.
4.
Protect your credit standing, your children are counting on you! Make sure you create a time cushion between your payments so that if anything unforeseen happens, you have the leeway you need to pay your bills without interruption.
With your children on your credit, they run the risk of having their credit ruined before they even get a chance to use it - take extra care with the way you protect your credit! 5.
Take your child off of your credit card when they turn 18.
At 18, your child can legally get a copy of your credit card in their name as a joint card holder and begin using your credit for purchases.
The goal of adding your child to your credit is to start their lives with excellent credit and show them what credit is used for so that they care for it properly.
You do not want to give them a gateway to your credit as a practice ground.
The better prepared they are for the real world, the better care that they will take of their credit - their livelihood depends on it! Following these tips will allow you to give your children the head start they need in life with readily accessible excellent credit at 18 years old.
If we had that resource starting out, and the knowledge base to care for it, we could have avoided a lot of bad credit decisions and accomplished a lot more.
Now you can provide your children the tools that will motivate them to care for their credit, and by knowing what the purpose of credit really is, they will accomplish the lifestyle they desire.