Getting a head start on building credit is a great way for teenagers to pick up financial responsibility in life.
Teens can learn early on that building good credit will help them when they apply for a loan or a credit card.
Teens can start by learning healthy financial habits, such as creating a budget and paying bills on time.
Opening a checking account with a debit card is a great first step. It will help them spend within their limits.
Once teens turn 18, they can apply and responsibly use a basic or secured credit card to learn credit management.
Teens can learn how to manage their credit limit, learn how interest works and how to avoid late fees.
They can start small with paying for gas when they get their license or pay for their own clothes.
Parents can add their teen as an authorized user on one of their credit cards to help them start building credit.
It is important you ensure that your teen takes full responsibility for their use of the credit card.