All good education begins at home, and that definitely includes education in money management. If your kids learn well, they'll reach adulthood with the ability to buy a home and begin building financial equity throughout their lives. You may have to help them get that first line of credit, because they'll have no financial history to show lenders, but from there they'll have a beautiful credit score and clear sailing.



It's a shame that schools don't include this subject, because it would save a lot of headaches and heartache if they did. However, it is up to you. And if you've had credit problems in the past, perhaps teaching your children will help you build some sound money management practices yourself.

Begin when the kids are old enough to start asking for money - be it a quarter to put in a candy machine, or a new toy. Give them a small allowance each week, and show them how to budget. Let them learn first hand that if they put it all in a candy machine, one quarter at a time, they'll never have enough for that special toy.

No one can spend the same dollar twice, so they need to learn to make choices about where their money goes.

Next, teach them about bank accounts. Begin with a savings account and let them make the deposits and watch the balance grow. Then teach them about checking accounts and the necessity to keep careful records. Be sure to explain how their little nest egg will help them later, when a good credit score becomes important.

Show them how foolish mistakes can make their money melt away. Overdrafts and late charges are such a disappointing way to spend money - you get nothing at all for your dollars. And now, when banks and credit card companies can charge as much as $40 for being one day late with a payment, or $1 over your balance on a check you write, those fees can really add up. By high school kids should be learning about credit reports and credit scores. And they should be learning about the importance of knowing your credit score. So get your free credit report today and see what it says. If your credit score needs to be improved, start working on it now, so that you can also teach your kids what they'll need to do if they should slip.