Teach your children how to use Credit Cards correctly.
I can proudly tell you my father taught me how to use a credit card correctly. He advised me to only put one expense on my credit card while I was in college. I used my first national credit card that I opened when I worked at the bank to receive the employee benefit points, and to this day I still receive them even though I do not work there! Added bonus right?
While I was in college, I would only put gas on this credit card because it was a small amount each month. Maximum $50 – $70 each month. Easy to pay off and build my credit.
You can use a budget calendar to track what’s on your credit card too, so you do not forget what purchases are on it. Write down a reminder on the budget calendar to pay it off each month in full!
Research a worthy credit card without an annual fee
My second credit card I opened I researched. I looked for a credit card that did not have any annual fee, and that I received a good amount of cash back on everything. I saw many that had cash back on only entertainment and groceries, but I wanted everything!
I am thankful I did not choose a card that only gave me points or cash back on entertainment and groceries, because when you need to cut your budget because you are in a tough spot. This is the FIRST place you are going to cut out of your budget.
These areas get people into trouble with credit cards, which is why credit cards try to tell you it’s a “GREAT” deal. No. No. No.
Please do not open a credit card at a clothing store either for a small percentage off. If you already have that’s okay. Just keep it open. You do not have to use it each month. It maybe a card you use only once a year to receive a really good sale! My mom has a Kohls charge card (credit card) and I use it when they have really good deals with it. Pay her back with cash/venmo, and we both get the good deal! She gets an increase on her credit score and I get an additional 10% – 15% off usually.
Use your credit card for big expenses that are planned in your budget
We only use our credit card for items that are planned in our budget.
Here are some examples we have done:
As you can tell all of these are over $100 and they are budgeted in our budget. By doing it this way, it makes it easier for me to find any expensive payment instead of looking through my debit card with a bunch of tiny purchases such as gas, food, etc.
Use your credit card for only gas
Like I mentioned before, use your credit card for only gas. This is a simple way to start with a credit card and usually not a huge change in this category. As for a high school or college student, this is a smart way to be able to build your credit score and usually you only have to buy gas to get to and from places.
Children’s Give, Save, Spend Printable Envelopes
Printable envelops to create good money skills. Kids feel confident plus have fun with these printable envelops.
You can even think about only placing 1 fill up each month on it to make it easy! Frugal and building your credit score.
Points add up!
When you complete big purchases on a cash back app, it adds up more rather than .05 cent here and .07 cents there. It has you create $20 here and $25 there. But please make sure they are budgeted in your budget and that you are able to afford it and pay it off 100% or this does not work! You will end up paying it in interest.
Received 2% cash back on all purchases.
2% cash back on all purchases add up, but even more when you buy big purchases. Spend $1,500 you get $30 back, spend only $20 to fill up your gas get .40 cents. That is the big difference! It is a good idea to us your sink fund on these purchases too to pay it off.
Our flight was $216 round trip for 1 ticket and we used our cash back that we built up! This is a great way for us to use these points and plus be able to travel to see our family. I love building up our credit card rewards to be able to receive a free flight!
What kind of ways have you used your credit card to your advantage and received a free something?
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