Start Them Young: 3 Steps in Teaching Kids to Build Good Credit

When you ask most other parents this question, “When should you start talking to your children about handling money properly and building good credit?” and you may get the same answers – “You can’t start too early” or “The best time to start was yesterday.” Now, the question is, do you agree with their sentiments?

You need to talk about credit for kids to have a clear understanding of the importance of having an excellent credit score when they’re older. You might think that it’s too early to have kids worrying about things like credit and money in general, but it’s one of those things that children should learn at home. That way, when they finally reach 18, and they can get a credit card of their own, they’ll know how to use it responsibly, and you, as a parent, won’t have to worry about their spending. 

So, how can you help build credit for your child and teach them one of the most important financial lessons they should learn? Here are three steps that you can try:

1. Start With the Basics

You must not overwhelm your child with terms that they won’t understand and explain things to them in a way that they can comprehend. You should start with the simplest ideas, such as never spending more than what you can afford, paying your bills in full and on time, and not opening multiple accounts unless you can manage them properly.

2. Let Them “Earn” Money

Instead of just giving them spending money, you can also take the opportunity to teach them about the value of working for your own money and financial literacy in general. You don’t have to figure out how to do this yourself because there are apps for building credit that calculates a score similar to how it’s done in the real world.  

One example is the Kiddie Kredit, a fantastic tool that helps parents teach their children the importance of good credit. Not only that, but they’ll also learn about the consequences of not doing their chores or responsibilities and what that will do to their score. An app like this can be beneficial, but you’ll have to do your part as well. Remember that the chores you will pay them for doing should be tasks that they can actually do and then offer them interest if they choose to save their money instead of spending them. 

3. Make Sure You Tell Them the Difference Between a Debit Card and a Credit Card

When you go shopping with your kids, all they see when you reach the counter is that you hand the cashier that magical plastic card and they get to take home all the new clothes and toys. You have to show them both your cards and explain how each works – how the debit card is, and how the credit card is merely borrowed money that you have to pay back. 


How you teach your child about credit and other financial matters will be a huge contributing factor to what they’re going to be like when they grow up. That lesson in building credit for kids may very well be the education that ensures that they’ll be wise with their savings and responsible with their spending habits. So, teach them all the basics they need to know, educate them about debit and credit, and make sure they learn through practice as well. Utilize helpful apps because they can improve the experience that you and your child will share significantly!

Kiddie Kredit is one of the best apps for building credit that you and your child will indeed find helpful. The way we score is similar to how FICO does their scoring, and our features can teach your young one financial literacy in a fun and easy way. Download Kiddie Kredit on your device today and start teaching your child about building credit!