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The word “credit” has a stigma
surrounding it due to the huge amount of
credit card debt acquired by many Americans.
However, it’s important to emphasize how
some credit is necessary.
Creating good credit is vital to adulthood,
because it persuades lenders to give you any
type of loan. Loans are often used for
house, car, and cell phone payments, among
other large purchases.
That’s why it’s crucial for parents
to teach their children about credit.
Parents can explain their own credit
problems so that their child is less
inclined to make the same mistakes.
Additionally, they can provide their
children with
actionable tips
for building good credit.
The downside is that in order to
have good credit, you have to be diligent
and wary of bad credit. Explaining a credit
limit, score, and report to your child is a
solid starting point for teaching them about
credit. Next, you can move on to showing
them different types of credit, such as
secured and unsecured lines, revolving, and
non-revolving credit.
Talking about credit isn’t the most
exuberant of topics, so broaching the
subject may be a feat in itself. But with a
few handy conversation topics up your
sleeve, teaching your student about credit
will be a breeze.
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