Families can-and should- work together to improve their credit history. Parents and kids can both benefit by working as a team to improve credit history. Couples enjoy an honest and open line of communication about planning for the future and kids learn how to establish their credit history when families work together on their finances.

Families and Debt: Couples Working Together to Improve Finances

Couples should work together to improve their finances. Family financial planning includes openly discussing spending habits, debts and savings plans before marriage. After marriage, the couple can improve their finances by working together as a family to budget expenses, plan for retirement and help their kids become independent and establish their own credit history.

Help Kids Establish a Solid Credit History

Help prepare kids for life on their own by giving them information about how to establish and maintain a solid credit history. Kids frequently drop out of college due to financial debt. This may be due in part to not having a solid foundation of information about how credit works before they move away from home. Kids need to understand that their credit history, once established, won’t just go away if they move or switch jobs- it becomes part of their permanent record. Children need to be aware of the importance of paying off debt and staying on top of bills and due dates before they turn 18.

Family Financial Planning Tips

In addition to working together and establishing open lines of communication, family financial planning tips must include an overview of the credit report. Parents should share a copy of their credit history with kids. The discussion should include an overview of what’s included in the credit report, what parents did right and wrong in their debt repayment efforts and information about how to monitor a credit report to prevent identity theft . The family credit history can be improved by subscribing to a year of credit monitoring before kids leave for college. A credit monitoring service allows the family to review their credit history and look for areas of improvement together.