Financing for Kids: How to Introduce Credit Building

As parents, watching your kids grow up is an unforgettable time in your life and theirs. You stay by their side through every stage, do your best to be there for them, and teach them everything you know about what life has to offer. 


When the day comes, your children will be fully equipped and knowledgeable to face the real world, and you won’t have to be worried because you know they’re ready to venture out on their own. By imparting what you know to them, you’re preparing your kids for a brighter future that lies ahead of them.


Part of teaching your children various life skills is providing them financial education, including how credit works. That way, you can watch them be more cautious about their spending habits and avoid making credit mistakes in the future. Keep reading below to find out ways to teach credit for your kids.


Provide Them an Extension of Your Credit Card 

The first step to improving your children’s financial knowledge is to appoint them as authorized users of your credit card by providing them an extension of yours. As a result, all your credit transactions will reflect on their file and vice-versa.


Due to the number of years you’ve been utilizing your credit card, never forgetting to miss a payment deadline or settling a fee, you end up giving your kid an excellent credit score over time. In fact, you don’t have to wait until your children reach the right age because even while they’re still a baby, you can already go ahead and begin refining their credit score.


When you establish an extension of your credit card for your kids, they will have their own card with their name on it. When they reach the right age and begin to deal with money bit by bit, it’s up to you whether to hand them their card or wait it out a few more years. Either way, what matters is that you can continue building credit for your child.


Tell Them Everything You Know About Credit Scores

In general, understanding credit ratings can often be considered as complicated, even for adults. But if you want to be of assistance to your kids, then you should do your best to share with them what you know.


The best time to start teaching your child about credit is when they reach their teenage years because that’s when they begin to acknowledge the actual value of money. When you give them time to understand how credit scores work by using simple terms and relatable scenarios, financial topics will seem less intimidating.  


Teach Them How to Build Financial Practices

Part of teaching your child everything there is to know about credit scores is showing them the proper way of handling their finances. The habits they build are what you can expect them to hold onto, such as managing bills, not missing deadlines, and making sure not to go past the credit limit.


The reason you want to make them an authorized user of your credit card is to not only keep track of their spendings but to teach them how to pay their debts back on time. That way, the minute they go overboard, you can let them know about it to help them avoid making the same mistake next time!



Learning about credit scores while your children are still young is one excellent way to show them the importance of money. When you provide them authorization for your card, tell them about credit scores, and help them hone effective financial practices, you’re teaching them how to build their credit ratings. That way, once your children are all grown up, they know better than to keep a bad rating, go past their credit limit, and suffer from unpaid debts. 


Are you looking for apps for building credit to help teach your kids about finance? Kiddie Kredit is a mobile application developed to help teach children about the importance of a credit system through completing their household chores. Download our app today and find out how it works!

John D Saunders

John D. Saunders is a Web Designer and Founder at 5Four Digital, CMO at Kiddie Kredit and an Automation Expert with a decade of experience building brands online. He's worked with clients including Audi, NAACP and Apps Without Code.