Cementing the debt, savings and investing relationship

A credit card is a great tool to help build both a credit history and a healthy financial life when used responsibly. Talk to your kids about what types of purchases they may want to pay for with their credit cards and which are best paid for in cash. Emphasize to them to spend only what they can pay off each month and encourage them to pay their monthly bill on time.  For tips on how to manage credit, refer to our credit card guide.

Help your kids keep track of what they earn and spend over the year in order to figure out their average expenses and savings. Knowing this allows your kids to adjust their budget based on their current needs and lifestyle expectations. You can show your kids how you budget, and ask them to do the same. A great first step is our budgeting tools.

Today, younger investors aren’t just looking to invest in companies with solid returns. They want to invest in companies that align with their social, environmental and governance ideals. That’s responsible investing.

You know your kids best. With adult children, money conversations can include everything from savings and debt to investing. Preparing them now will lead to financial success later.