Practical, Actionable Borrowing and Credit Card Tips
This video provides simple, actionable borrowing & credit card tips in a simple, concise way for kids and beginners. It could be used by kids & teens to learn about borrowing & using credit cards, or used as a money & personal finance resource by parents and teachers as part of a Financial Literacy course or K-12 curriculum.
Suitable for students from grade levels:
- Elementary School
- Middle School
- High School
The topics covered are:
While we all need to borrow from time to time, it’s important to keep in mind these crucial borrowing & credit card tips to avoid falling into a debt trap.
Tip #1: Don’t borrow what you cannot repay
While it may be tempting to use a credit card or buy now, pay later for impulse purchases, make sure you don’t overestimate your capacity to repay.
Take time to understand the terms of the loan, interest rates, the consequences of late or missed payments, etc.
Tip #2: Use credit cards wisely
While credit cards have their advantages in terms of cashback and other rewards and are necessary to build your credit history, make sure to pay the balance in full every month.
Otherwise, the interest can quickly rack up and your credit rating can take a serious hit.
Tip #3: Pay off debts
While it may not seem like the most exciting use for your money, paying off debt is crucial.
It helps avoid exorbitant interest payments and late fees so money can be put to better use. This improves your credit score, which helps with mortgage, lease, or any other type of loan.
So these are the top borrowing and credit card tips!
Borrowing and credit cards are two key aspects of personal finance – but there is a lot more to it.
Check out our other posts for more actionable tips on budgeting, saving & investing, insurance, etc.