68 percent of parents don’t explain this key money concept to their kids

By Kathleen Elkins | Source, CNBC

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.

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