Hey so does anyone have a advice or ideas on how to start ur child’s saving and or start building their credit
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I have a credit card that all my kids are on. None of them have their cards in hand I keep them. Use it once a month and pay it off.
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I agree with those saying you must teach your child, you should not do it for them
Put them as an additional card holder on your credit card. You never have to even give them the credit card. They’ll piggyback off of your credit
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Take out a loan for $1000 dollars. Don’t spend the money. Each month make the payment with the money!
The only reason a person needs credit is to borrow money. If you save up and use cash to buy the things you need, you won’t need credit.
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I would’ve loved if my parents had taught me to be financially responsible, and financially literate. I didn’t know anything and the advice they gave me was terrible (which is why they were where they were).
So I’m going to focus on teaching and they’ll be on the right foot to start it all when they become adults. I def don’t want to cause any issues by doing things before then.
I did set up accounts for them for me to put money into - but that’s not related to their credit. Just financial abilities.
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My dad made a bank loan with me as co signer and then gave me the money and I had to pay the loan back.
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Best thing you can do is teach your child financial education skills. Teach them the principal of paying themself first. Teach them to live within their means and to respect what they have. Don’t teach them to live on credit. Start by getting small jars and have them decorate each one according to the name of the jar. Then pay them an allowance each week. Rack week on pay day take a portion of that money for expenses a portion goes in a giving jar scorpion goes in a savings jar. If old enough have them colour in blocks as they reach milestones so they can see their investment grow. If you feel so inclined teach them about interest by asking to borrow a few bucks and then pay them back with a few extra bucks. Also tameach them credit by having them buy something by borrowing from you and then demonstrate how it costs moser when they buy like that.
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Assuming you have good credit and keep low/no balance, add the child (assuming 18+) as an authorized user. In a month or two, have them sign up for their own card. (I recommend DiscoverIT) and make at least one purchase. I know it’s suggested that cards are used once a month or so (and paid off), however I’ve not found this to matter. I’ve directed several people to do exactly this with children, spouses, etc., and all have 770+ scores within a year.
I added my son to 3 of my credit cards as an authorized user. Helped him build his credit. So he was able to buy his truck without a co-signer because his score was 790.
You can keep the cards in ur possession and not give them to the child
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Jess Heleski that’s not true. Credit is used for alot of purchases that most adults will make, home repairs or something as simple as buying a new appliance (alot of people don’t have that amount of cash) or going on a trip require a credit card. Having good credit is actually very important and makes most things alot more accessible to you.
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This is a slippery slope too. There’s nothing wrong with a child building their own credit (if needed) and we sure don’t want them to turn 18 and realize they already have a score that’s not stellar.
I will add that I had all 3 bureaus freeze my son’s credit to try and prevent any potential for fraud until he gets older and more able to manage.
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Most credit card companies will allow an authorized user at about 13. Do that to any card that has a very low balance with good payment. Don’t give them a card though. I just told the card company that we were declining the extra card
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My dad had me get a credit card as a teen. I could use it anytime I wanted BUT I had to have the cash to backup the purchase. There was an envelope taped to my bedroom door where I had to put the cash and receipt for each purchase. At the end of the month we sat down and compared ever receipt to the statement. I then gave him the cash and he wrote a check for the bill. This taught me to NOT spend beyond my means and to watch my statement so I only paid for expected purchases I made. He also talked each month about the interest rate and what my next bill would look like if I didn’t pay the whole thing off.
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Add their name on as a verified user of your credit cards
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Because of the way the question is posed, I’m thinking you’re referring to an actual child? Great idea to start saving early, but you won’t be able to build credit (or need to) until they’re 18. Apologies if you are referring to an adult child and that was obvious. If for an adult, open a prepaid credit card (a card you load with $ ahead of time but it will get reported as if it’s actually a credit card). Make small purchases and start by paying off the balance each statement period. Once that routine is established…consider a larger purchase and paying it off over a few months time. This will show a payment history and begin to build good credit. Do not spend more than you can pay off quickly. It’s easy to lose discipline (especially when young) and this could ruin your credit for a long time. If they aren’t ready for it from a maturity stand point, don’t do it! You’re not doing them any favors by letting them get into debt too early and/or taking the steps for them. Unless they can manage this on their own, with some guidance from you, don’t do it.
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Talk to your bank. There’s a card thats like a debit card but is recorded like a credit card. That’s what my son did. He charged everything for a month but had the money in the account to pay it off.
Assuming you’re saying child as in under 18 why would you need to use their credit?
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Teach them that credit is another word for debt and to avoid it at all costs. Plastic money isn’t real. Work hard, earn and spend only cash. Avoid banks. Never ever get or use a credit card. If you ant afford it, you don’t need it until you can afford it.
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If you have a card that you pay regularly on you can add them as an authorized user. I have a card through capital one with my 8 & 9 year old girls on as authorized users! Just be sure to never miss a payment on that card because not only will it hurt your credit, it will hurt your child’s credit too!
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Start savings, checking account young. Give them credit cards with their name and yours on it with a limit for gas. We have our daughters gas cards so they would always have gas in their cars. It helped to build them credit. Took them back when they graduated college.