Part of kid’s money education includes building credit

Teaching your kids proper money habits will pay enormous dividends later in life. By helping them develop a healthy attitude toward money early on, you help prepare them for a number of situations they’ll face as they enter adulthood from buying a car, to renting an apartment, to a thousand other occasions where financial literacy can save them from severely overpaying.

Part of this financial education revolves around credit and how to build and use it responsibly. But before your child can demonstrate an ability to use credit properly, someone has to give them credit in the first place. Without a measurable income, they may find it hard to establish the credit needed to build a solid credit score.

Fortunately, there are a few ways you can help start even younger children on the path to their own credit stability.

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Add them as an authorized user.

This approach assumes that your own credit habits are sound. But if your card will allow it, adding your child as an authorized user on your card can help them establish a positive credit record. As an authorized user, your teen will have a card in their name that’s linked to your account.

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