Am I alone or does it seem like we have evolved into a kind of plastic planet? I can’t think of a place off the top of my head today that does not accept some form of plastic. In fact the more I look around the more I am seeing that checks are becoming a thing of the past and are often not accepted in establishments as a form of payment.
Here is a fun fact for you! Did you know that in McMurdo Station in Antartica where there is a population of 200 there is a ATM! An ATM in the middle of no where! What does that tell you?
I feel like we are handing the balance of credit over to our eager children with little knowledge of what credit is, how it works and how important it is that they take care of it wisely. When I was growing up my dad overly emphasized, I mean let me express to you that the man put an emphasis on credit and it was imperative that I understood this! He took it very seriously, this importance of getting and maintaining good credit. It is something that has definitely been embedded in my brain no question about that!
When most people lay down before they close their eyes for the night they think out loud “did I lock the front door, did I lock the back door, did I turn the porch lights on? “ But for me, forget about the doors I’m sure the door is fine and as for the lights, there lights what’s the worst that could happen! As I jump up out of bed I’m thinking out loud CREDIT SCORE, where is my credit score, what is my credit score, how is my credit score! Ahhhhh!
And so I divulge in short you see for me building a good credit score is essential! And it should be for you to just maybe not to that extreme!
Today’s world is becoming a scary place when a credit card becomes a right to passage for our teens it is something that is so easily and readily available to our kids today. With the world of instant gratification and the evil of convenience, there are unforgiving consequences that could haunt them for years to come.
Much like cheesecake, a moment on your lips lifetime on your hips!
It is important that we do our part to help them understand tool versus toy. Good credit is something that needs to be obtained and it is key to be maintained. That and to eat cheesecake in moderation!
Credit cards are not all bad don’t get me wrong. They build credit, they are great for emergencies and it’s like a magic card that allows you to buy things when you don’t have the cash in hand. But beware there is a catch. A credit card is a loan… I say again a credit card is a loan you have to pay it back.
All of my children have been set up with at least a savings account, depending on the age they have checking accounts as well as a credit and or debit card. When I think of establishing credit for my teens there are things I take into account I think of the best approach as a debt-dubious mom and I consider each child individually.
- My teens temperament
- My teens saving and spending habits
- My teens level of demonstrated responsibility
- My teens maturity level
After all those things are considered we move on to options. Back in the day it seems like you had one the other or none, those were your options. Today however one comes with a variety of packages, the other is equally as enticing with these items to consider, or you can always try both!
I encourage everyone to make sure you do your research.
- Shop around folks. There are so many credit card companies out there you need to know not all cards are the same, look for a card with no annual fee and a low interest rate.
- Free Stuff. Many cards offer free stuff upfront as a signing bonus but do not be led astray the free pencil isn't worth a high interest rate.
- Watch out for introductory rates. Card companies will flash low introductory rates out at you as bait. Once the grace period ends or you pay late, that rate will jump!
We must think ahead. I try to teach my kids, to let them know your credit score can be your best friend in a time of need, or it can be your worst enemy the choice is yours. If your debts are paid on time, and you do not exceed the amount allotted (credit line), you will build good credit and get a better score. If you have a bad score or no credit score at all you will not be able to buy the things you really need later on. Like a home, a car a loan all these things we are taken as a given in life. Don’t come up short!
No comments:
Post a Comment