How To Get Your Kids To Start Saving
On Total Debt Freedom’s Facebook Wall, we asked you what you wanted to read on our DEBT FREE LIVING blog. You came back with some great answers, and here are some of the results!
Thanks to Debbie Bashford for suggesting we let younger fans know how they can start building a good credit rating now – instead of later when they’ll need it more!
Here are four great tips for young savers out there that need a little more information on establishing a great credit rating.
1. Pay your bills
This seems like a no-brainer, but it’s something that can get us all in trouble. Whether you need to leave yourself notes, alarms or pay them as soon as they arrive, paying off your bills is crucial to having good credit. Don’t give the banks/creditors anything to worry about by staying in their good books each and every billing period.
2. Using credit is a good thing
Sometimes having good credit means you need to use credit. Responsible usage of a credit card or small loans is a great way to show banks that you know how to handle your bucks. See tip #1 to make this process a whole lot easier and more effective.
3. You don’t need to choose between spending and saving
Getting your savings started can be a daunting process. When your savings and credit are essentially at zero, it seems like you should be saving every dollar you earn – but we all know that’s not possible. Find a good balance between putting money away and spending on what you need. Good results will follow.
4. Fix your mistakes
Know this: you won’t have a perfect financial life. There will be setbacks, missed payments and expenses you didn’t plan on. Those are OK! Just start dealing with them early to cut off potential problems. Check in on your finances on a regular basis. Knowledge of what you have, what you owe and what you will owe make building good credit a relatively simple process.
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Have you thought about doing a seminar about debt, and options that goes to the Highschools? That would be helpful as the teachers don’t teach that as a subject and they certainly would not teach them their options of how to get out of debt. Perhaps some students would teach their parents too.
Just a thought.
Kathryn Johnson
Hi Katheryn,
That’s a great idea and we have approached schools, its just that they are very slow to react. I’m sure one day we will see money management as part of the High School curriculum.