Learning how to manage money and credit cards while young may lead to a more stable financial future.
It’s wise for parents with teenage children to start teaching them how to handle their finances while they can still supervise them. Starting out by opening a checking and savings account when a teen gets their first job is a good place to begin, reports GateHouse News Service.
Having a bank account shows that a person is stable and responsible in the eyes of lenders, says GateHouse. It’s a good way to start building a history of proper money management.
Applying for and using credit cards responsibly is also key to building credit, manager of First Merit Bank Tyler Hunstman told GateHouse. Too often he sees people try to get a loan who can’t because they haven’t properly established a credit history.
“They say, ‘But I’ve used this debit card for 10 years,’ but it’s their money,” Huntsman explained. “A debit card is like writing a check – there’s no credit extended to you.”
Knowing how to build credit history and solid money management skills are essential tools for young adults.