Living skills

Living skills
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  • Mom, look! With my new credit card, I am going to buy this new car!
  • $12,000
  • Are you sure you that you don't have a credit limit? Credit cards have a limited amount of money on them, called a credit limit. You also know that you have to pay back all of that money in the end, right? If you are not careful you will end up paying more money!
  • $12,000
  • What happens if I do not pay the amount off right away? Will it cause me problems later? 
  • It may give you a bad credit score, which is a number that says how reliable you are about paying off your loans. It also will go down in your credit history, which is the history of your loan payments. 
  • $12,000
  • You have to be careful with how you spend your money because credit reporting agencies create your credit reports based on your past credit history. 
  • $12,000
  • Maybe I will not buy this car... I should be smart and build up my credit for when I am older and want to buy something. 
  • $12,000
  • Way to be smart! It is harder to build up credit than it is to lower it.It is best to build it up now for when you really need it later. 
  • $12,000
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