Help them search for a job:
Work ethic is something which can definitely help a child in making him a responsible adult. He can join for a part-time job in a school for teaching children about the values of money. He can also explain about thrills involved when a saving grows and the disappointments in seeing it disappear just like that. So, they can explain the bad decisions which they learned in their journey of saving money. All these experiences can make them learn about credit. Along with this, having income at this early age can help them in the future.
Using Credit cards:
When the parents have a good credit habit, it will not be difficult to teach the same to their kid. So, children can start establishing their credit records at a young age. Remember one thing that makes them the authorized users. So, when they are authorized users they will easily get a card in their name. But the card will tie to parents account. In this case, the account will go on both the cards.
The authorized users are allowed to make the purchases on the account given. But the user who is termed as primary cardholder can only make the payments. Parents must help their child record as much as possible. Parents at the same time should make use of small potion for in the credit line. Along with this, they must always pay the bill on time every month.
In case if the teen is not mature enough then parents can give them a credit card but they should not give access to the account. In this case, the credit will grow once it is used and paid every month. Once they are ready to use the credit cards, and learn to handle it parents must explain them the ground rules involved here. They should know how the payments are made and why it should be done on time every month. It is very important to monitor their charges. In case if they behave irresponsibly, then parents must take them out from the account.
One must follow smooth process here so that the child will not get hurt but understand the value of the money. They must be responsible when they are using a credit card. It is better to give them a card which he only uses. This will help in understanding what charges he is making and there will not be any confusion like who made which charges.
Lloyd Blankfein, me, the owner of cnntopnews, have a business management degree. Have 3 years of articles write.