Teenagers may not be applying for mortgages or carrying multiple credit cards yet, but they already have something worth protecting: their identity.
As teens begin working, opening bank accounts, using payment apps and taking on more financial independence, it’s important that they understand how their personal information can be used — and misused.
Here are four things every teen should know before they start building credit.
- Your personal information has value
A Social Security number, bank account number, password or verification code may not feel like money, but in the wrong hands, that information can be used to open accounts, make purchases or access existing accounts.
Teens should know that legitimate companies generally won’t ask them to send sensitive information through an unexpected text, email or direct message.
A good rule: if someone unexpectedly asks for personal or financial information, stop before responding.
- You can have an identity problem before you ever have a credit card
Identity theft isn’t only something adults with established credit need to worry about. According to the Federal Trade Commission, generally, a child under age 18 should not have a credit report at all. If a minor does have one, it may be a sign that someone has used their information to open an account or apply for credit.
That can go unnoticed for years — sometimes until the teen applies for their first apartment, car loan, student loan or credit card.
Parents can help by checking whether a credit report exists and reviewing any information that appears.
- Your credit report is something you should learn to check
A credit report is essentially a record of credit accounts and activity associated with your identity.
As teens get older, understanding how to review that information is an important financial skill.
Look for:
- Accounts you don’t recognize
- Incorrect personal information
- Credit inquiries you didn’t authorize
- Balances or activity that don’t belong to you
Consumers can review their credit reports for free through AnnualCreditReport.com.
Making this a normal financial habit early can make it easier to spot a problem before it grows.
- Small online habits can protect you later
Protecting your identity doesn’t require becoming suspicious of everything online. It comes down to a few consistent habits.
Use strong, unique passwords. Turn on multi-factor authentication when it’s available. Don’t share verification codes. Be cautious about links in unexpected messages. And think twice before giving an app, website or person information they don’t truly need.
Most importantly, teens should know that it’s always okay to stop and ask someone they trust when something feels unusual.
Credit may feel like something they’ll deal with “someday.” But the habits that protect it can start now.
Teaching teens how their personal information works — and why it matters — gives them a head start long before they fill out their first credit application.