How right you were mom! Science Backs Up Their Credit Advice
BY: Wolfgang Erhardt, National Credit Bureau Spokesperson
Do you remember what your mom told you about money? She sometimes said rude things like “When you stay you will do what you want, now you obey” or “Do I have the face of a bank or what?”
I remember that mom would tell us phrases or make us do things that studies today recognize as especially valuable for teaching children to manage credit well.
Regardless of whether their income is large or small, many Mexican mothers make the effort to give their children an amount each week so that they learn how to use money. There are also those who instill the value of effort by offering their children an amount for simple tasks that they can do at home.
A study from the University of Arizona showed that receiving Sunday, or allowance, allows children to have real-world experiences with the use of money and favors learning that later translates into better financial decision making.
Another study, this one from the University of Toronto, did a series of exercises in which a group of children could make purchases with a credit card and with cash.
The children who did not receive a Sunday, or an allowance, at home made very high expenses with the credit card. In contrast, the children who did receive were much more measured in their purchases with the credit card.
Researchers highlight that Sunday or allowance helps children develop a cautious attitude with money that is reflected in a more prudent use of a credit card.
Mexican mothers give their children valuable elements to manage money. It is true that they told us phrases like “Money does not grow on trees” or “Don’t throw money on deaf ears”. It is also important to watch mom get organized to make the money work; it forms lessons that later translate into more prudent behavior with money.
For example, a study from the University of Washington found that children who receive money advice and observe their parents being careful with money have moderate levels of debt and higher credit scores as adults.
A credit score measures your performance when paying your credits and generates a score that indicates the probability that you will pay a new credit well. In Mexico it is known as My Score and can be requested together with the Credit Report because it is generated through it. This My Score has a minimum score of 400 points and a maximum of 850. The higher the score, the more likely it is that the credit applicant will meet their payments; It is then of lower risk, which means that it is easier to lend and offer better conditions because the low risk allows it.
In the field of credit management, the example of mom becomes more important because various studies show that women manage their credits better.
Now that you know this, have you ever wondered how your credit score will compare to mom’s? To find out, both can go to www.burodecredito.com.mx and find out.
You might surprise Mom that your MyScore is better than hers. Mom will surely be very happy to know that you have followed her example and that today you are subject to credit for your good credit behavior.