6 Essential Steps When Considering a Credit Card

In this episode, Matt and Charla McKinley dive into the often contentious and anxiety-inducing topic of credit cards. Charla, the creator of “Beyond Personal Finance,” shares her unique perspective on teaching teens about credit card usage. Matt & Charla firmly believe in the importance of hands-on financial training and practical experience for teens and that includes the wise use of credit.

Step 1:  Understanding Credit

– Charla’s philosophy on credit cards and why she believes in teaching responsible usage.

– The contrast with Dave Ramsey’s approach and the rationale behind it.

– The power of credit cards to build or destroy credit and the importance of understanding this balance.

– How simulating adult life helps teens grasp budgeting, career choices, and financial planning.

– The role of credit cards in building a credit history and its long-term implications.

– Adding teens to your credit card and teaching them to manage payments.

– The significance of borrowing money and the cost associated with it.

– Charla’s hands-on approach to financial education through her program, “Beyond Personal Finance” for parents who need additional support in teaching the financial basics.

Step 2: Choosing the Right Credit Card

– Evaluating credit card options based on individual goals and needs.

– The benefits of starting with a manageable card, like one from a familiar bank.

– Transitioning to more beneficial cards as teens become more financially savvy.

Step 3: Reading the Fine Print

– Understanding the critical details in credit card agreements.

– The consequences of missing payments and the hidden costs associated.

– Real-life experiences and lessons learned from overlooking fine print details.

Connect With Us:

You can find the rest of the steps and read more about this (or past topics) on Charla’s blog:  https://beyondpersonalfinance.com/our-blog

To subscribe to the weekly email with links to our podcast and blog, go here:  https://beyondpersonalfinance.com/subscribe-1

To learn more about our unique products designed to increase your children’s understanding of how money works in the real world, go here:  https://beyondpersonalfinance.com/

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