It's Time for the 'Credit' Talk

Credit can be a difficult financial topic to cover with your children. However, it’s probably one of the most important money lessons your kids can learn from you. In their lives, their credit score will follow them—through purchasing a new car, buying a home and obtaining good interest rates. Therefore, it’s vitally important that you teach them the strong financial skills they need to maintain a healthy credit score.

Credit 101

To teach your children the concept of credit, you need to help them understand the idea behind borrowing and paying money. You also want to explain the difference between good credit and bad credit, as well as how they should never take out a loan that they can’t afford to pay back.

In addition, talk with your kids about how their credit score—both positive and negative—affects them in the future. Has your teen ever pointed out a car he likes while you’re driving somewhere together? Use that as a teaching moment to help him understand how his credit score can play a role in purchasing a car.

This is also a good time to teach them about the importance of keeping their information private. Explain identity theft, and how protecting sensitive information, such as social security number and other identifying information, can help prevent fraud.

This fall, our team at First Volunteer Bank will visit middle and high schools in our area with the Get Smart About Credit curriculum. If you want to ensure your school is on the list, contact your local First Volunteer office or our Customer Care Center at (866) 668-4700.