Help your child build a solid credit score

Parents want good things for their children, and a good credit record is certainly something that falls into that category. To help children achieve one, it’s important to teach them sound financial habits. Among the most fundamental lessons is valuing the money they earn and that they shouldn’t spend what they don’t have. This is the philosophy behind building a strong credit record over time that will help children take responsibility for their own financial lives.

Access to credit plays an important role in achieving financial goals and building wealth over time. A good credit score can help make it happen.

Here are three ways that you can help your teens and young adult children build a good credit record:

1. Make your child an authorized user on one of your credit cards

This can be done prior to the time your child can obtain their own card, giving them the ability to use the card for their own purchases. You will still be responsible for paying off credit card bills, but your child’s credit score may benefit from being associated with your strong credit record. It can also serve as an initial test of how your child handles credit. Set expectations that they are responsible for repaying you for any charges they accumulate.

2. Have them build their own credit when possible

The time will come when your children will qualify for a credit card. Again, it’s important to stress the importance of paying bills on time each month. Ideally, they will pay off the entire balance monthly to avoid high

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Bronwyn Martin