How to Help Your Kids Build Good Credit Habits
Jul 14 2026
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Most people don't think about their credit score until they need it. And the irony is that it takes time and good behavior to build good credit. So, giving your kids a head start is a gift from you and can be a way to teach good habits and skills that can last a lifetime.
Long before your kid needs good credit, they can start building credit history with your help. And by starting early, you can teach your kids important lessons about credit and money from a young age. Here are helpful steps you can take to build good credit with and for your children.
Start Early
Basic credit lessons can start as early as kindergarten. At this age your kid is, obviously, years away from actually using a credit card or having a credit score, but what you teach them can help them make better credit decisions as adults. Finance-oriented education has been tied to lower debt, higher savings and better credit scores as children grow into adults. You can learn more on the FDIC website, specifically by reviewing their "Money Smart Instructor Guide". There are units for specific ages and include ways you can teach your kids good credit habits at home.
The Consumer Finance Protection Bureau also has resources available for specific age groups to help you teach healthy financial behaviors. They also provide book options that can help spark conversations about good money habits.
Keep things simple for elementary school age kids. Make it possible for your children to borrow money and make sure they have to pay it back. For example, if they want to buy a new video game, make sure they have a plan to pay you for it over time. And if they fall behind on payment, you can take the game back until they make their payments on time. Or have them build up savings to pay for half of the game and when they have the money you can match their savings, giving them a sense of accomplishment and good financial behavior paying off.
Once they reach middle school age, you can get more into the specifics of credit scores, but don’t get too technical. Chessie Federal Credit Union recommends comparing them to the grade scales at school. Except that credit scores usually run from 300 to 800, not 0 to 100 like school grades. You might compare 800-and-higher credit scores to an “A” or “excellent,” 740-to-799 credit scores to a “B” or “good,” and so on. Improving this score requires doing the right things. For example, paying bills on time and not borrowing too much. Give the kids an allowance and help them build good habits by enforcing buying and saving behavior for the things the "have to have".
High schoolers can and should handle more responsibility. Take the time to have conversations about credit, both good and bad. Share examples of how different actions can help or hurt one’s credit. Give them context. For example, a car. What happens when you want to buy a car and you have no credit vs. when you have great credit. The same car will cost a lot more to someone with no credit or low credit vs someone with a high credit score.. Teens can also play around with a credit score simulator. This shows how even small decisions can have a big impact on credit scores.
Consider Authorized Use Options
Preparing your kids to be smart with credit is a great start toward building lifelong habits. Once they're teenagers, it's time to put that preparation to work. Making them an authorized user on your credit account will directly help them build their credit before age 18. While it doesn’t mean your kid automatically gets a credit score, your good behavior will help them to start building good credit history. NOTE: not all cards build history. Make sure you add your child as an authorized user on a card that does help your child build history. Examples of card issuers that offer authorized users for children include, Chase, Capital One, Bank of America and Citi. And you can start when they're 13 years old.
Consider the following to make sure an authorized user on your existing credit card is a good idea for you and for your children:
- Will they use it? This is a tricky decision. You might trust your older teen not to run up the bill. But to be safe, you might keep the card yourself. You can always let your kid use it with permission.
- Will you remove them at some point? It’s fine to keep your kid as an authorized user well into their adult years, but it’s your call. At a minimum, don’t remove them until they have their own account. It could undo all the good work done.
- How does your card company handle minor authorized users? Card issuers aren’t always clear online about whether they report account activity to the bureaus for those under age 18. Ask your card company beforehand so you don’t waste your time.
- Do You Have Good Credit Habits? If you carry a lot of debt and don't make timely payments, your bad habits will weigh on your children if you add them as authorized users to your account(s). Make sure you're ready to pay on time and, ideally, in full, so that your good habits help build good credit for your children.
Model the Right Credit-Building Habits
Children learn from what they see at home. This is especially true with how their parents handle money. In fact, research from late 2025, shows that 74% of young adults say that their parents are the primary source of financial lessons vs just 27% who learn about money management in school. And while 74% of young adults say that their parents are their financial behavior models, just 23% of parents are comfortable teaching these valuable skills.
Where do you start? Model good behavior and make sure you help your kids plan and make good decisions. For example, if they want to buy a new pair of shoes and want to use your credit card, perhaps tie this purchase to a payment plan. If they have no way to pay you back, make them earn the purchase and pay it off right after they buy the shoes. Or have them pay your card provider with their money right after the purchase.
Share responsibility with your kids. Have them sit with you as you pay bills each month. Explain what you own and how you budget and pay for everything from your mortgage to utilities to your credit card payments. Share how you have to budget and and as costs go up on one area, like gasoline, that you have cut back elsewhere, like entertainment. Sharing real world financial decisions helps your kids understand that it takes work to build and maintain healthy financial and credit habits.
Give your kids real-world experience; with your guidance. Have your kids manage their own savings accounts and create budgets in kid-friendly apps. Pay them for small jobs, have them set purchase goals and let them earn it. These things help to learn how to manage credit and create habits that last a lifetime.
Help Young Adults Get Their Own Accounts
Credit options open up when your kids turns 18. You can help them apply for a student credit card or a secured card. And you can help them build credit by using services such as Experian Boost to report cell phone bill and other payments that can build credit over time
Co-signing for your children is an option but it comes with responsibility and risk. You can help them to get student loans, car loans and credit cards by acting as a co-signature and using your good credit to open doors for them. But you are responsible for their payments if they fall behind. And bad behavior can impact your credit as well. So, make sure you co-sign with a plan, and expectations that you can manage and enforce.
Teach and enforce on-time payments. Late payments are credit score killers. Help them avoid my many early mistakes by:
- Paying off their card balance each month, or at least much more than the minimum.
- Keeping balances low to help their credit score and avoid excess debt.
- Not opening a bunch of accounts, which might make them overspend.
- Using autopay and reminders for all payments.
- Asking their creditors quickly about options if they’re struggling to pay their bills.
- Checking their credit scores and reports often.
Remember that your kid won’t build good credit overnight. But these strategies can at least give them a good start or teach them important money skills. They’ll probably thank you later when they start using credit.
Frequently Asked Questions
Is it ever too early for my kid to build good credit?
If you mean directly as a credit card authorized user, that depends on your card company’s policies on both the minimum age and credit reporting for minors. But you can teach them about credit and model good behaviors even in early childhood.
When do kids get a credit score?
It’s usually when they’re 18 and get their own account. However, a kid could have a credit report if they were an authorized user of a card reported to the credit bureaus or a victim of identity theft.
Can I check my child’s credit report?
Yes, you can check it if your kid has one. But check with the bureaus for the steps. You’ll usually need to mail a special form and documents rather than do it all online.
Other Articles of Interest:
Make sure to check out other great articles about money management and ways to save, including:
Why a High Credit Score Can Save You Money
Building Credit From Absolute Zero
The Credit Card Mistakes That Cost Americans Billions
Is Paying Off Debt Better Than Investing
Why Most Budgets Fail After 30 Days - And How To Succeed
Sources:
https://catalog.fdic.gov/catalog/s/?selCategoryNm=a1Et0000003lWcGEAU
https://www.consumerfinance.gov/consumer-tools/money-as-you-grow/https://unest.co/insights/where-kids-learn-about-money
https://www.empower.com/the-currency/money/teaching-kids-about-money-news
https://www.experian.com/blogs/ask-experian/should-you-add-child-as-authorized-user-credit-card/
https://www.experian.com/blogs/ask-experian/what-is-minimum-age-for-authorized-user/
https://www.chessiefcu.org/resources/education/8-lessons-to-teach-kids-about-credit
https://www.ally.com/stories/credit/credit-score-averages-by-age/
https://www.fdic.gov/consumer-resource-center/2025-09/teaching-young-people-about-money
https://www.schwab.com/learn/story/9-tips-teaching-kids-about-money
http://consumerfinance.gov/consumer-tools/money-as-you-grow/
https://playmoneysmart.fdic.gov/tools/107
https://www.myfico.com/free-credit-score-range-estimator
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