In general, the sooner you start having money conversations with your kids, the better. And the good news is, the majority of American parents are having those talks: Over half, or 56 percent, according to Chase Slate's 2018 credit outlook survey.
But most parents are skipping over a key money term, the survey finds: Only 32 percent of parents have explained what a credit score is.
Your credit score, which is represented as a number between 300 and 850, is a crucial component of your financial health. The better your score, the more likely you are to get a good deal on a home, car or other loan.
But 25 percent of millennials don't know what a credit score is and results of surveys and money IQ tests both show that there's a lot of confusion around the topic.
As part of a six-question money quiz, personal finance site GOBankingRates stumped more than half of its 2,000 respondents with this question about credit: "True of false: Income does not impact your credit score."
The answer is "True," since your income does not directly affect your credit score. Only 40 percent of respondents got it right.
Here are the five factors that do affect your FICO credit score, the most popular scoring system out there:
Besides credit score, read up on other important money concepts and habits to teach your kids.
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