Banks and other lenders rely on credit scores, a number that reflects your debt-to-income ratio and repayment history, to determine whether to issue borrowers a credit card or loans for a car or home mortgage. They also use it to determine what interest rate they should charge.
By making payments on time and keeping your debt to a minimum, consumers are far more likely to qualify for the most favorable, lowest interest loans.
Finally, there’s nothing like a lesson in compounded growth to motivate your adult children to save for their future.
Teaching kids to save is merely aimed at giving them the tools to become smart consumers, use debt wisely and put money away for their future.
1 MassMutual State of the American Family 2013 survey.
Provided by Freddy Lopez, courtesy of Massachusetts Mutual Life Insurance Company (MassMutual).
© 2016 Massachusetts Mutual Life Insurance Company, Springfield, MA 01111-0001
For more information, please see: