Adults know that the personal information in their wallet and (increasingly) on their phone has to be guarded carefully and kept track of, as it can open the door to identity thieves and problems ranging from inconvenience to financial ruin. And as children approach the age where they will have their first credit cards and opportunities for increased financial obligations, it is just as important for them to learn in their own way how important it is that this increased opportunity comes with increased risk, both from debt and identity loss. The Equifax Finance Blog has a new article outlining one way to impress on youth the importance of understanding the risks in the new article, “Three Lessons to Teach Your Children about Credit Cards.”
The article explains why it is important for youth to understand that credit is a form of controlled debt – a way to afford more, but that it must be paid back later. While this debt is controlled by how often they use the card, it is important to keep in mind that the potential for larger debt is still there, especially if the card is stolen or skimmed. It is for these reasons and many more that it is important to have an identity theft solution plan in place, from having backup information to cancelling cards to having a credit monitoring service to help credit card users (of any age) stay ahead of their risk.
For more information about how to stay safe with credit, protect from ID theft and have a better financial lifestyle, check out the helpful articles on the Equifax Finance Blog!