Simple Steps to Getting Your Kids to Learn About Credit

Giving your children a few lessons on financial responsibility is very important. So many kids grow up without knowing how to spend their money properly or what the significance of a credit score is, which can lead them to so much vulnerability to financial problems as they grow up. It’s a parent’s responsibility to provide some insight on such a topic.

It’s a start that so many families finally include talks about cash and credit with their kids. About 83% of American parents are educating their children about finances. Understandably though, money can be a difficult topic to introduce to someone younger. They may not even be remotely interested in paying any mind to these things yet.

There are a few ways to help them learn the concepts, though. Keep on reading this guide to understand how to effectively get your kids to learn about credit.

Explain the Concept Concisely

Try to ask them what they know about a credit card and go from there. Some of the shows that they’ve seen may give them a small idea about how they work. A common answer is that it allows them to buy different things.

Now, try to simplify how that the items they would get wouldn’t be availed for free. Note that the credit card holder would have to pay back for them. Depending on their age, it’d be better off to use the actual terms of lenders, interest rates, and credit score. Relying on a metaphor may still give them the wrong idea and misunderstand what’s at stake when growing up.

Have a Practice Exercise

The best way of teaching your kids about money is through application. Before jumping into anything too drastic, give your kids some cash. Note that they can spend it on anything that they’d like to get them interested in participating. Set the terms of how they will pay it back in the future, like doing chores or favors for you.

This exercise can help enlighten your kids to use or take only as much as they can cover in the future. Most financial problems usually stem from the concept of overspending and being unable to coordinate with their creditors about how to cover the payment back.

Give Them Some Experience

Be sure to get your kid’s input, but having them as an authorized card user under your credit card would be a step up from the previous exercise. This real-life experience would enable them to get a feel about how to handle a credit card and how to use it.

Prepaid debit cards and credit-simulating apps would also be a good practical way of letting them understand transactions. There would be less at stake, and the lesson still remains about how important it is to be responsible with money.

Discuss and Offer Rewards

Credit cardholders get a variety of perks when they can pay back their bills and properly manage their credit card. Emulate the same idea when you’re carrying out these practice rounds with your kid.

If they exhibit good financial behavior like keeping their spending to a minimum or paying back when they take money, commend them for it. Get them a good reward too so that they’ll remember how advantageous it is to be smart with their credit and maintain a good balance.


It can seem like a big jump, but educating children about finances is the first step in steering them away from monetary problems. It’s better to let them have a grasp over credit to develop good spending habits from a young age.

Eyeing credit score education for kids? Kiddie Kredit is the perfect mobile app that teaches kids about the credit system by completing chores, providing various easy-to-use features. Download today!

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.