Why You SHOULD Give Your Kids the Keys to the Porsche
Elizabeth McLaughlin, AVP Marketing, Affinity Federal Credit Union
Just kidding. Don’t give your kids the keys to the Porsche; that would be crazy. But, you might want to give your kids access to your credit card account. Think that’s a bad idea? Not really.
My parents taught me an early lesson about credit cards. When I was 16, they made me an “authorized user” of their account and gave me a credit card. At the end of the month, we would sit down together to review their statement. This showed me what I had spent and, more importantly, I was expected to give them the money to cover all of my charges.
This taught me:
- How little purchases rapidly add up
- To be accountable for my spending
- The importance of having a way to pay for things I bought
- Responsibility by paying off my credit card bill each month
I was shocked when I got to college and saw my friends racking up debt on their cards while only paying the minimum balance due each month. But it wasn’t until years later, when I didn’t have the money to pay my bill in total for the first time ever, that I truly realized the value of what my parents gave me – the necessary tools for financial success. I appreciate that my parents helped to set such an important foundation for responsible money management when I was younger.
In honor of Financial Literacy Month in April, give it a try. Affinity Youth Accounts helps parents monitor all spending on the account by providing the option to register for transaction notifications – a helpful tool to keep tabs on your teen.
So, go ahead. Hand over the keys to the Porsche and teach your teen the value of responsible credit card use. One day, they’ll thank you for it!
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