One of the greatest financial gifts that a parent can give to his/her child, is a good to excellent credit standing. You may ask how can you do this? I would say, to add your child as an authorized user on your credit cards. This is only recommended if you are financially responsible. The good behaviors that you establish, will automatically be inherited by your children via excellent credit scores. For those who are not familiar, credit scores are similar to grades received in school. The higher your score/grade, then the more favorable you become, and you may have access to better deals. If you are having a challenging time maintaining a good credit, then adding your child as an authorized user may not be ideal.
You may decide to add your child to the credit card and give them the card to learn how to manage it responsibly, or you may decide to add them to the card, but not give them the card to use, the choice is yours. I was fortunate to have a dad who added me to his credit card as an authorized user and to “piggyback” from his financially responsible behavior, long before I got my own credit card. The strong foundation that was built for me, made it easier for me to have access to competitive interest rates if I ever needed to acquire something on credit.
Setting up your child with a strong and solid financial foundation, can most certainly make their lives better. If you are ever wondering what gift to give your child, then give them the gift of a strong credit score.