Credit is really, really important. Don’t agree? Look at the United States National Debt figures. This country wasn’t built on paying for things with cash. Yes, our government hasn’t done a great job managing debt over the years. The inability to manage it effectively has left a lasting impression on individuals’ credit management.

For starters, most people struggle to define credit. If someone asked you what credit is, could you rattle off a simple definition? If not, don’t worry. Credit can be summed up with this acronym, O.P.M. (Other People’s Money). Simple right? Depending on the source, you may see a definition like this: credit is a customer’s ability to obtain goods or services before payment, based on the trust that payment will be made in the future. But why is something so fundamental to our country’s existence so misunderstood?

The Urban Financial Services Coalition (San Francisco Bay Area chapter) hosted a workshop on the importance of credit. During the Q&A, a young man wanted to share how he learned about credit. He said his story was simple and should be shared with everyone. His story starts in college, when his mailbox was full of credit card offers. He knew that establishing credit was essential but didn’t know the first thing about it. Up to that point, he’d only heard that credit was bad and that you should avoid it at all costs. Note: If you believe that, please reconsider. The young man decided he needed counseling about getting this credit card, and he reached out to someone he knew was good with money, his mother. Note: When seeking financial advice, please consider a professional or, at minimum, someone who is good with money.

During this brief 10-minute conversation with his mother, the young man learned how to keep his credit stellar. His first question to his mother was which card he should choose and from which financial institution. He had offers from both banks and credit unions. His mother said, “Pick the card that you think looks the coolest.” Why on earth would she say that? The mother knew that any financial institution sending such mail wouldn’t offer a college student any great credit card deals. It would be a basic student card, probably with no annual fee. And for applying, they would probably get a t-shirt or some other tchotchke.

The young man didn’t think picking a card was that easy and told his mother he’d “heard” he should be concerned about the interest rate before applying for a credit card. His mother gave him a great lesson about interest that everyone should heed. The interest rate won’t apply to you if you pay your bill in full each month. In case you missed it, it’s worth repeating. THE INTEREST RATE ON A CREDIT CARD WILL NEVER APPLY TO YOU IF YOU PAY OFF YOUR BALANCE IN FULL EACH MONTH.

Next, the young man asked his mother how to use his brand-new credit card. She said to make a few small purchases each month and pay off the balance in full when receiving your statement. She told him his credit limit would probably be pretty low (it was $200) since he was new to credit and a college student. And unless it was a real emergency, he should NEVER get close to that $200 limit. She reminded him that using a credit card is like taking a 30-day, interest-free loan. If you don’t pay off your balance in full, that dreadful interest will most certainly kick in. She explained that because he stuck to this simple process, the financial institution would probably raise his limit. She warned him that just because they raise his limit doesn’t mean he should spend more. He should stick to his simple plan: make a few small purchases each month and pay off the balance in full, no matter how high his limit may become.

As a result of that conversation with his mother, the young man never had credit issues. Of course, his mother didn’t share with him all the moving parts when it comes to credit, like there being 3 credit bureaus, the credit score and how all 3 bureaus report it differently, how your credit score is calculated, why checking your credit report from all 3 bureaus each year is critical, etc. The biggest thing the mother did for this young man was keeping it super simple. Many of us complicate financial matters, which causes a ton of stress in our lives. This young man has always viewed credit positively, primarily because his credit was indeed stellar. He learned how it worked and adopted a great habit early on. It also helped that the person who gave him the advice was a great steward of credit.

Not all of us will be fortunate enough to have parents who understand credit and how the game works.

Imagine if everyone had someone break down credit before getting their first credit card, as this mother did for her son. Debt (specifically credit card debt) probably wouldn’t be much of an issue.