Money Talks News: Teaching teens to build credit - Toledo News Now, News, Weather, Sports, Toledo, OH

Money Talks News: Teaching teens to build credit

(Source: AP Images) (Source: AP Images)
Money Talks News -

According to a recent survey, teenagers will be responsible for about $75 billion of discretionary spending this year. 

And a lot of that money is being "charged." 

Adults know a credit is a tool that need practice to perfect. There are tips to help prepare your teens for using a credit card.

First, you can buy your teen a prepaid card. That will give them plastic experience without a credit risk.

The next step is opening checking account and getting your teen a debit card.

When it is time to train them on a credit card, make them an authorized user on your card before they turn 18. If you have good credit, it will help theirs. But keep in mind you are liable for their charges.

After they turn 18, consider co-signing or becoming a join applicant in their first credit car. But again, keep close watch because if they pay late, your credit will suffer.

When their credit begins to accumulate, show them how to check their credit history by pulling a credit report.

For more information on how to help your teen build their credit, head to Money Talks News and search "credit."

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