More than 70 percent of parents say their kids don鈥檛 know the basics of money management, according to Visa鈥檚 2012 . What do you think that says about the future? The adults making that assessment haven't demonstrated much financial savvy, either, (e.g. dot-com bubble, housing bubble, Great Recession). The good news is we can help our kids avoid future economic hardship.
Ideally, everyone should have the foundation for a solid credit score as well as experience using a variety of financial products once they become financially independent. In order to achieve that goal, we recommend giving your children an allowance on a prepaid card when they start high school, while requiring that they pay for some of their own expenses. There鈥檚 no risk of racking up debt or ruining your credit with a prepaid card. Once your child shows an aptitude for budgeting, sound spending, and avoiding unnecessary fees, progress through cash and checking account-based allowances before finally graduating to a student credit card.
So, there you have it, your road map to a healthier wallet in 2013. All that鈥檚 left to do is stick to your resolutions and have a great year.
鈥� Odysseas Papadimitriou is CEO of the credit card comparison website Card Hub and the personal finance social network Wallet Hub.
