This article discusses the importance of credit as a powerful financial tool and how young people can benefit from it. The information is presented through an interview with Tori Dunlap, the educator and speaker behind the “Her First $100K” initiative, which aims to help young adults (especially women) gain control over their financial matters. The interview also addresses how parents can talk about credit and money with their children and foster confidence and the ability to manage credit.
Starting with the Basics of Credit
Tori Dunlap talks about her personal experience with her first credit card and how she used it responsibly to build her financial confidence while understanding how the card works and how to build credit responsibly. She also notes that parents can share foundational lessons about credit with their children and enhance awareness of how to use credit properly and avoid high debt.
Credit = Financial Power
Tori Dunlap emphasizes that credit is financial power and that people need credit to advance in their financial lives. She explains that credit is not inherently bad, but it must be used responsibly. She also points out that people who promote the idea that credit is bad or unnecessary provide misleading and incorrect information.
Learning Alongside Your Teen
Tori Dunlap suggests that parents can learn alongside their children by sharing financial content with them, such as videos on TikTok or YouTube or podcasts. She points out that this can be a great way to learn and open up a dialogue with the next generation.
Overcoming Fear to Empower Youth
Tori Dunlap recommends that financial content be non-judgmental and not shaming, and that parents should avoid feelings of shame or judgment when discussing financial matters with youth. She encourages listening to young people’s questions and providing the necessary help and resources to help them avoid financial mistakes in the future. She notes that the dialogue about money should continue into adulthood.
Reviving the Topic if Youth Is Disinterested
Tori Dunlap points out that if young people are not interested in learning about credit or discussing money, parents can revive the topic by linking it to social and economic issues. She encourages clarifying that personal financial decisions are not the only reasons for wealth or poverty and that building financial foundations can be a form of protest and empowerment.
Source: https://www.thebalancemoney.com/why-credit-is-a-powerful-financial-tool-5205475
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