One of the most important lessons your kids can learn is how to use credit cards responsibly. Credit cards are a big part of finances these days, and your teens need to learn how to use them in a way that benefits them -- rather than ending up in debt.
And, indeed, financial literacy is increasingly important. According to the Canadian Council on Learning, by 2005 Canadians were spending 96% of their disposable income (up from 82% in 1980). Additionally, only 10% of Canadians are "very knowledgeable" about basic personal finances.
Effective financial learning begins when children are younger. Start teaching your children about finances now, and teach them about how to properly use credit credit so that they are able to succeed.
Check Out Our Credit Card Education Centre
If you want tips on teaching your children about credit, our Credit Card Education Centre is a great place to start. We offer lessons you can use to teach teens about money, as well as information on how to determine if your child is ready for a credit card. Our resources can help you learn more about money, financial literacy and more. Your child's money management success is largely determined by the habits they learn now.
Use our Credit Card Education Centre to improve your knowledge of finances -- and help you teens learn about smart choices, while enjoying some fun stuff, including an interactive credit quiz. Test your knowledge of credit and credit cards, and learn how to better handle your finances.
Finally, there is a Financial Responsibility Pledge that you can print out. This can help your teen understand what you expect, and studies show that kids who understand expectations are more likely to behave as they are desired to behave. And, of course, high expectations in the area of finances will lead to financial success.
This post was included in the Canadian Finance Carnival at the Canadian Finance Blog, and in A Homeschooling Carnival at My Homeschool Garden.
Sometimes I worry that my kids will see me using my credit card on every purchase and not associate it with good money management. By using cash I notice that they can really understand what money is worth, whereas credit cards are almost like monopoly money to them. I think I will sit down with them and have a talk about responsible money management show them how we use our money. I think we do a good job managing our finances, but I’m not sure they see it that way. Maybe I’ll even sneak in one of your quizes! Thanks for the info!
Sally
we really need to do that. the desire for fast response has taught us to lose our self control, even with spending