Whether your child is preparing to enter fourth-grade or heading off to the college dorms, it's important to talk with them about the connection between credit and education.

If you have youngsters at home, you might be interested to know that the majority of parents around the country are using the back-to-school season to teach their children important money management skills. A recent survey by VISA found that more than 90% of parents want students to learn practical money skills before they graduate from high school.

Or, if your child is heading off to a college campus, you should know that eight out of 10 college students now have credit cards. To help them better manage their finances early on, the Consumer Federation of America and MasterCard International have teamed up to offer the "Financial Survival" program to colleges and universities nationwide. This year, the two organizations will be urging campuses to integrate "Financial Survival" materials into their student programs, especially freshman orientation. You can access these materials yourself at www.financialsurvival.org.

Whatever stage your family is at, there's no doubt that back-to-school time can put a strain on a family's finances. So, in the article below you'll not only find tips on teaching kids-young and mature-about good credit habits, but also some information on how to avoid racking up credit card debt while perusing the aisles this shopping season. Want to learn more about your own credit rating? See your complete credit picture with the 3 Bureau Online Credit Report. Get all three of your credit reports plus a free credit score!

Giving Children a Taste of Financial Freedom

You don't necessarily have to make your child an authorized user on your credit card to give them experience of using credit. Try these options:

• A parent-controlled debit card like Visa's Buxx is a good first step. You can set up an account in your teen's name and provide them with their own card. This card is NOT a credit card, but rather a debit card that is only worth the balance deposited into the account. The money is then available for the teen to spend online while parents can monitor what is bought, and even block purchases of alcohol or other products parents deem unfit.
• You can also get your teen or college student Virtual Pocket Money, which is like a pre-paid debit card that can be reloaded with money by parents or the child. The cards may be then used for both online and in store purchases.

First Credit Cards

Just getting your first card? Have a child who wants to apply for his or her own card? Here are some basics to consider first.

• One card is sufficient.
• Make sure when applying for a credit card that tuition and allowances are not included as "income." The higher the income level, the higher the credit limit will be. Keep your limit reasonable-it helps when you're tempted to overspend.
• Pay all your bills on time! The quickest way to damage your credit history is by not making timely payments to creditors.
• Don't let anyone borrow your credit card--even your best friend. You will be held responsible for all charges.
• Create a spending and budget plan-monthly credit card payments should never exceed 20% of your monthly income.
• If credit card debt does build up, ask for help. Don't wait until the accounts have been sold to a collection agency before seeking help from parents or a friend. Remember, credit is a serious matter. If debt becomes overwhelming and bankruptcy is the only alternative, it will remain for up to 10 years on your credit report.

Shopping

Whether you're picking out bedding and other necessities for a dorm room, or buying your kindergartner an outfit for the first day of school, back-to-school shopping can impact your credit card balances. These are some tips to help keep your debt under control.

• Set a budget. List all expenses for each of your children including school supplies, clothes, and any uniforms or equipment for extracurricular activities. You may also want to include haircuts, immunizations and physicals. Take the list with you when you shop and be serious about sticking to it.
• Start early. Spread school purchases over a couple months instead of a four-day spree. It makes it easier to pay with cash and leave the credit cards at home. Another option is to decide how much you can afford to spend and buy that amount in traveler's checks. When you have used up the checks, your shopping is over.
• Involve your children. Ask each child to make a list of school necessities and an estimated cost for each. Show them how quickly small items can add up and eat away at the budget. Also let them determine spending priorities and pick out items using the budget. It will help them learn the difference between necessities and luxuries. As they become older and more responsible, consider putting them in charge of budgeting and buying. Giving them a set amount of traveler's checks is a convenient way for them to keep track of what they have left to spend.
• Set an example. Children learn by watching their parents-resist the urge to spend compulsively and point out the benefits of sales, discount stores and volume buying.

Article brought to you by ConsumerInfo.com