Borrowing money

The Next Big Talk: Borrowing Money

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.

Balance borrowing money

Rules of Thumb

  • Borrow only what you can pay back
  • Maintain a healthy credit score
View your credit report

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

Credit Card
Start small by paying off one bill a month with a credit card and pay it off each month.

Cart Shopping
Use caution with store-brand cards, which often have higher than average interest rates.

Search
View your credit report yearly and look for any inaccuracies.

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.

Have The Money Talk