Having bad credit can make so many things in your life more difficult and more expensive. Your credit score is used to determine everything from what interest rate you pay to whether you get that job you applied for.
But even more important than those things is the effect your bad credit can have on your children and their quality of life.
That’s right, bad credit doesn’t just affect you. It affects your kids, too.
1. Think about it.
Back-to-school shopping, school outings, after-school activities — all of these things cost money.
When you have bad credit, there’s little chance you’re going to be able to put them on a credit card.
Most likely your kids are going to miss out on a lot of these things. And we all know the stigma faced by children who aren’t able to participate with other kids in school.
“The best gift you can give your
kids is financial management.”
2. Life lessons.
Besides the activities kids can miss out on, there is an even more critical way in which bad credit can affect your children’s lives.
The financial lessons kids receive while growing up will influence the relationship they have with money well into their adult years.
When they hear things like, “I know I can’t afford it, but I’ll just put it on a card and worry about it later,” this can begin to build bad habits from an early age.
Instead, use those teachable moments to tell them about your mistakes and how you are correcting them.
3. As your kids get older, your bad credit will continue to affect them.
As they apply for student loans, need a co-signer for their first car or anything that depends on your credit, they will be out of luck. Even establishing their own credit will be difficult without you to help them get started.
There are even more ways bad credit can affect your children’s lives — but you don’t have to let it.
The best gift you can give to your kids is the gift of responsible financial management. Teach them the right way to deal with credit by demonstrating how you are getting your own finances in order.
Tell them the causes and effects of having bad credit. By doing this, you can begin to turn a bad situation into a positive life lesson for them.
Photo source: bp.blogspot.com.