Monday, August 15, 2011
Teaching Your Kids About Money - Credit Cards?
To say that I was a bit shocked when this arrived in the mail for my nine year old (yes you read right, my NINE year old) would be a bit of an understatement. It is an actual Visa Debit/Credit card. Although you have to add money to the card to use it, I was very surprised that this would be mailed out to a child. Even worse, Cody was chomping at the bit to use his credit card. We had to explain to him that credit cards are NOT free money. It was an important lesson for him to learn.
I had actually been thinking about getting similar cards for my older boys (the teenage ones, the ones who are 15, 16, and 18) through a service called BillMyParents after learning a little more about them when I attended BlogHer. I got to watch a funny video that explained more about the service which I've included below.
But... all of this got me thinking about how important it is to teach our children about money, especially about credit cards. Many people do not learn how to use credit wisely, and then when they get their first credit card it is after they have already left home and have no one to teach them about the benefits but also the pitfallls of purchasing things using credit cards.
I am planning on incorporating some lessons on handling money for all of my children (yes even the little ones). Although I don't think I will be getting them their own credit cards, I think it is important to start teaching even the youngest ones about the value of money.
What things do you do to teach your kiddos about money? Have you had these conversations?