Seems like that is a perfect example of why it is important to teach both about budgeting and saving in addition to building credit.I agree that both ways will get you a good standing, however one teaches discipline and the other spending.
Because let’s face it, a young adult going to school with no job, but a credit card, will likely use it even though he/she cannot pay it off. It gets them hooked on credit.
That’s the goal and why banks give out credit cards to high schoolers now.
And if they were told it will built their credit score, then they will justify going into debt a lot easier too.
Yeah, the jobless young adult in school/high schooler in that example likely doesn't need a credit card. But the person getting their first house likely needs a mortgage where a good score makes sense to have. Both extreme examples, other more tangible reasons to manage a credit score for say a 20 something would be insurance rates.