Some of us get into credit card trouble and most of the time it is because of poor management and keeping track of how much money that we spend with the cards, and in no time at all we are maxed out and have to face the task of paying down the cards, If you have ever been in this situation then you know that it is very hard to gain back your financial freedom, And once you gain back your freedom you are much more aware of the consequences.



One of the best things that I have found getting into credit card debt is that I have learned a lesson and that I can pass that knowlege on to my children, And the best way to do that is the same as teaching them everything else that you have taught them, As they grow into young adults they will be glad that you shared your knowlege with them, Thus giving them a good start when they start building their credit at a young age.

Teaching kids to use credit effectively is not about keeping them from having credit, If anything, the opposite is true, A credit card is as essential a tool for modern living as a car and a cell phone, We would even make the bold statement that to send a child out to fend for himself or for herself without a working credit card in her pocket, a respectable credit rating already building up and the training in how to use credit is nothing less than irresponsible parenting by adults, It is equivalent of sending your child into a battle with no weapons, Credit is essential and smart use of credit is even more essential.

You can help your child begin to understand the basics of getting good credit by getting them a credit card in high school or college. You can pay the bills but this is a good way for them to pay for what they need and you can keep track of their spending from that monthly bill you get, But make sure that credit card is in your childs name so as you pay it off each month, By doing this they build up the good credit rating from what you are doing. Consider it another one of the many legacies you are passing along to your kids.

Now don't just let your child go wild with their credit card, In fact, you can work with many of the credit card companies to establish a credit limit and not allow it to go up, In that way you can set a limit on the amount of credit they have each month. And if they go over it and suddenly cannot buy lunch because they abused their credit, that afternoon of going hungry will teach them more than two days of lecture about fiscal responsibility can do.

You want to make sure that your child is aware that you are paying their bills and that it is a privilege and that they are very lucky to be able to start their adult lives with a sponsor like this, Then give them three jobs they must complete to show they are worthy of this privilege.

First they must save all receipts of every purchase they make. If they buy something and don't get a receipt, they must make one.

Second they must maintain a ledger of spending, This can be similar to a check book ledger but it must be complete with every purchase they made and a running total and it must be maintained daily, If an expenditure shows up that is not on that ledger, they will be required to pay that back to you or risk losing their credit card.

Third they must sit you once a week or whatever time that you can set up to review the credit card bill and explain item by item what each entry on there is, This will do a lot to keep them from using the credit card wildly.

If you create these simple habits and stick with them then in a few short months you can teach you child how to track and be aware of their spending, Once they have got the training from you then they will be able to build their credit and maintain a good credit rating as well as get a great start in their adult life.