Help your teen understand how to borrow responsibly and pay debts on time. When ready, teach the importance of having a good credit score, and what it means going into adulthood.
Rules of Thumb
- Borrow only what you can pay back
- Maintain a healthy credit score
Understanding Your Credit Score
Your score is comprised of:
- 35% Payment history
- 30% Amounts owed
- 15% Length of history
- 10% Credit mix
- 10% Now credit
3 Tips for Building a Strong Credit History
Having the "next big talk" is as important as any other life challenge, and we're here to help you and your teen along the way. We've created The Money Talk guide, using real-life examples, to make it easier for parents to help their teens get familiar with finances and jump into adulthood with a sense of financial independence.