How to talk to your teens about credit and identity theft

Getting ready for college or back-to-school is a good time to talk with your teens about financial wellness. To help guide the conversation, the FTC has free tools on managing money, building credit, and protecting against identity theft. Creating good habits takes time, but here are some ideas to get you started.

• Get step-by-step instructions on how to make a budget. Use the accompanying worksheet to show your kids the importance of tracking how much you’re taking in and spending.
• Get credit reports for free at AnnualCreditReport.com. This is an opportunity to talk about credit reports and how the information in them affects their ability to get credit cards, loans, or even a job or apartment. Generally, a child under 18 won’t have a credit report. If they do, it could be a sign of identity theft.
• Schedule time to regularly monitor your teen’s credit. Let your child know the importance of regularly monitoring their credit reports to make sure they’re accurate. Get reports free every week from all three nationwide credit bureaus at AnnualCreditReport.com. Take steps to dispute any errors you spot. And if anyone has used their information without permission, report it and get a plan to help them recover at IdentityTheft.gov.

While on the subject of money and credit, use consumer.gov for more tools to help you prepare your kids to manage their money, handle their credit, and deal with debt as they get older — all while avoiding scams.