One of the Best Gifts You'll Ever Give Your Child

One of the Best Gifts You’ll Ever Give Your Child


When we think of “gifts” this time of year, they usually come in the form of wrapped boxes underneath the Christmas tree and perhaps even delivered by jolly old St. Nick himself!

But some gifts that parents give to children aren’t wrapped, can not be held, boxed, or placed under a pine tree.  They are, instead, valuable lessons that will pay for themselves over and over again as your child grows and matures into adulthood.  Then, hopefully they are passed onto future generations, so that they all may benefit from the same wisdom.

Understanding how to responsibly use credit is one such gift.

Credit can be as fragile as a delicate glass ornament, but when built and used correctly, it can be tougher than a Tonka Truck (does Tonka still make trucks?) and more valuable than gifted shares of Amazon stock!

Surprisingly, although understanding the intricacies of credit can be a bit complicated, knowing and following a few basic principles isn’t overly complex.  Here are a few important credit facts to teach your kids, especially teenagers who may be beginning to experience credit for the first time.

1. Pay your bills on time.  Lenders and creditors aren’t kidding when they put a “due date” on a bill.  Paying bills late really does matter and if you can’t afford to make the payment on that credit card or car every month, then just don’t buy it.  It’s as simple as that.

2. Bad credit habits will cost you a lot of money.  Teens and young adults don’t always understand things like compounding interest and how higher rates loans or credit cards can cost them hundreds of thousands of dollars (or more) over the course of their lifetime.  Making money and thriving in today’s world isn’t easy, and if you are constantly giving more of your hard-earned dollars away to banks, lenders, and credit card companies, you are only making your life tougher.

3. Good credit can open up doors!  When you earn and maintain top tier credit, you can find yourself with opportunities that aren’t offered to just anyone.  For instance, if you are looking to start a business and need capital, banks will be more willing to lend it to you when you have a strong credit history.  That single opportunity alone could be life changing.  Conversely, negative credit could cost you the opportunity to do things such as buying or renting a house.

4. Bad credit can haunt you.  Negative credit items such as late payments, collections, liens, and judgements can follow you for years, forcing you to pay more for borrowing money or be denied financing for an extended period of time.  Again, this makes life much tougher and more expensive.

So this year, as you sit around the dinner table discussing family matters, don’t be afraid to throw in a pitch for responsible credit.  You’re giving them a gift that can truly last a lifetime.

Merry Christmas from Dedicated Credit Repair!