I plan on encouraging my kids to always hold a part-time job from freshman year of high school and on. I also can't wait to forbid them from using credit cards. My parents never taught me about CC debt (probably because they always have a balance too!) and I'm feeling the effects now. Same with Rob Sr. After learning the hard way, we know everything about debt!! We have extremely high credit scores despite holding high balances on our CCs because we have done so much research and learned so much the hard way.

I plan on having my kids open CC accounts freshman year of college and purchasing essentials like mini-fridges, books, etc. with the cards, then cutting up the cards and slowly paying off the balances myself. Then when they graduate, they can take that credit card to use for themselves. It's important to build up a long credit history, but I want my kids to learn that CCs are only for emergencies and they shouldn't be spending more than they take in.

I have a friend whose rich dad paid for his college tuition in cash and bought him a car in cash as well. When he graduated and started applying for a credit card and a car loan, he got denied everywhere he went because he had zero credit history. He had to get one of those credit cards you put money on first and then use up. Kind of like a glorified gift card you buy for yourself. It helped him build a credit history and it took him years to qualify for anything. I would love to be able to provide for my kids like his dad was able to, but I also want my kids to be prepared to take on the real world once they are let loose into society!