Snag Our Signature Budget Template!

Hey, budget besties! In this episode, we dive into the controversial topic of whether kids should start building credit early. We tackle common advice about opening credit cards for teenagers and offer a different approach focused on budgeting and financial literacy. If you're wondering how to guide your kids towards financial success without relying on credit scores, this episode is for you.

Key Points Discussed:

1. Common Advice on Credit Scores for Kids:

2. Many parents and even teachers suggest kids should start building credit early by opening credit cards.

3. We argue this isn't the best approach for financial education.

4. The Problem with Early Credit Cards:

5. Credit card companies and even educators are pushing kids towards credit, often before they're ready.

6. This can lead to financial illiteracy and dependence on credit from a young age.

7. Financial Literacy and Budgeting:

8. Teaching kids how to budget and manage their money is more important than building a credit score.

9. Vanessa shares her approach to setting up bank accounts and automatic transfers for her son's first paycheck.

10. The Military Example:

11. We discuss how military programs often focus on credit scores for new recruits, highlighting a systemic issue with financial education.

12. Changing the Narrative:

13. Instead of focusing on credit scores, we should teach kids to budget, save, and manage their money wisely.

14. Imagine a future where our kids don’t need credit scores because they have learned to save and pay for things in cash.

15. Practical Steps for Parents:

16. Open checking and savings accounts for your kids and teach them about automatic transfers and budgeting.

17. Encourage them to save for big purchases and understand the importance of financial responsibility.

18. Long-Term Vision:

19. By focusing on financial literacy, we can help our kids avoid debt and build wealth from a young age.

20. We envision a future where kids grow up understanding how to manage money without relying on credit.

Takeaways:

1. Teach Budgeting Over Credit Scores: Focus on helping our kids manage their money effectively.

2. Set Up Bank Accounts Early: Guide our kids in setting up and using checking and savings accounts responsibly.

3. Encourage Saving: Help our kids save for their first big purchases, like a car, rather than financing them.

• Big Picture Thinking: Aim for a future where our kids are financially independent and not reliant on debt.

4 Ways To Connect With Us:

1️⃣ FREE CALL: Book your FREE 20-Minute Financial Coaching Call now! Get personalized advice and start your financial journey ➡︎ https://www.budgetbesties.com/freecall

2️⃣ FACEBOOK: Become part of our Supportive Facebook Group. Connect, share, and learn with others mastering their budget skills ➡︎ https://www.budgetbesties.com/facebook

3️⃣ BUDGET: Grab our Signature Budget Template! It's your key to organizing and optimizing your finances effectively ➡︎ https://budgetbesties.com/budget

4️⃣ COACHING: Ready to dive deep into your finances? Sign up for 1-on-1 or Group Financial Coaching. It’s the accountability and guidance you need to make real progress ➡︎ https://budgetbesties.com/coaching

"I love Shana & Vanessa and this podcast is amazing!" < If that sounds like you, please consider rating and reviewing our show! It helps us to reach more people – just like you – to help them change their financial future. Don’t forget to follow the show so you don’t miss any episodes! And, if you’re feeling really generous, we’d be SO honored if you would share this podcast with someone.

Click here to view our privacy policy.

This description may contain affiliate links, meaning we may get a commission at no cost to you if you click & purchase!