Finance Articles » pay credit bills http://www.stocktop.net Fri, 02 Jul 2010 17:59:48 +0000 http://wordpress.org/?v=2.8.2 en hourly 1 Teaching Kids To Be Financial Responsible http://www.stocktop.net/teaching-kids-to-be-financial-responsible/ http://www.stocktop.net/teaching-kids-to-be-financial-responsible/#comments Tue, 24 Mar 2009 04:53:48 +0000 http://www.stocktop.net/?p=14 Credit cards can be used by everyone, old and young. The old people understands what it means to have a credit card. Not all young people understand that. Some young people think that having a credit card means that you have access to money to buy what you want. This is true, but they are missing another part of the process which is paying back those money you spent. A credit is a card that gives you money to use now for you to repay back in the future with interest. The thinking mentality that if you have a credit card, you have money, has led people between 18 – 25 years old to max their credit limits on their cards. The average college graduate is leaving college with over $5,000 in debt. Parents need to teach their young adults how to understand the true meaning of credit cards fine prints (terms and condition). This would help them to use build a good credit history.

Responsible Financial Rules

Building a good credit history helps someone to be able to procure a mortgage or auto loan down the road. The first steps to help your kids to develop good financial habits

1. You should teach them how to plan a budget. A budget would help them to know what is their spending limit so that they don’t over charge their credit cards.

2. Review their monthly credit bill. Teach them to differentiate between needs and wants. Teach them that needs are things they cannot do without, but wants are things that are can live without. For instance, they need to buy gas for their car, but they don’t need to go to movies every week.

3. You should enforce on time credit payments because these affects their credit history and the amount they pay in interest. Credit cards comapnies would raise their interest rates if they are lates in their monthly payments after a couple times. If their monthly interest increase means that they would pay more money as monthly payments, meaning that they would have less money to either spend on other things or to save more.

These tips would help your young adults to be responsible with money and improve their credit score.

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