Ep 03: Buying Insurance Young and Building Credit Early

Summary:

On this episode of The Wilson Wealth Show, Maurice, Ciera, and Ablavi discuss the importance of buying life and disability insurance at a young age and talk with special guest Nykea Gray about building credit early. Maurice explains that credit provides you with the ability to buy big ticket assets before you actually have the cash to pay for them and insurance protects your family and your income while you are building wealth. He uses the analogy of guaranteed versus non-guaranteed contracts to describe what it is like to be living with and without life and disability insurance.

 

Ablavi goes on to explain that while it is simple to say that you should buy insurance and build credit early, it is more difficult for individuals and families when economic conditions cause financial strain. She says that she is aware of many families who are having to prioritize day-to-day costs and needs over wealth-building ones due to the pandemic and underemployment. While this is a very real factor, Maurice points out that the less you spend on things like insurance and building credit, the longer it takes to build wealth.

 

Nykea Gray is a credit card and fraud expert who joins us today to share her insights on credit and provide a good tip on setting your kids up for success. While individuals must be 18 years old to qualify for their own credit cards, they are eligible at the age of 12 to be made an authorized user on their parents’ credit cards. Authorized users receive the benefits and drawbacks of the credit history on that particular card, so be sure that the card you choose to add them on has a strong payment history and a low utilization percentage, but this is the best way to establish good credit for them before they are able to do so for themselves. The door swings the other way as well, however, so be careful not to allow that particular credit card to get behind on payments or get too close to maximum utilization.

 

We hope that you found this episode helpful and we look forward to you joining us again next time!

 

Key Quotes:

“These are critical tools that should be addressed at the beginning of our wealth-building journey.” (Maurice)

 

“In the game of life, we all have non-guaranteed contracts when it comes to how long we have to build wealth.” (Maurice)

 

“It is important to know the factors that are included in wealth-building.” (Nykea)

 

“Knowing how to manage and maintain credit at an early age is going to set you up for success.” (Nykea)

 

 

What We Covered:

0:56 – Credit and insurance as wealth-building tools

1:52 – How credit and insurance help you build wealth

4:32 – The less you spend, the longer it will take you to build wealth

6:53 – Our guest, Nykea Gray, shares about how to build credit early

14:56 – Making material cost cuts rather than transactional ones

16:30 – The negatives of adding your teenagers as authorized users on your credit card

 

 

Connect with the Wilson Wealth Show Team:

Website: https://www.wilsonwealth.com/

Facebook: WilsonWealthFBPage

Maurice @ LinkedIn: https://www.linkedin.com/in/mauricewilson