There was a time that i would have said that teens should never have a credit card, but in the last year or so my perspective has changed a little bit the big issue is education if parents and schools would step up and teach kids and teens how to handle their money responsibly, how credit cards work, and how to avoid credit card debt many teens wouldn’t have a problem in the first place. The facts about credit cards for teenagers by trent hamm updated on 091014 credit cards family a reader recently pointed me towards an interesting article at msn moneycentral on the topic of restricting the access that teenagers have to credit cards much of the. But teens often don't even grasp the abstraction of credit — and that eventually, you have to earn the money to pay the balance on the card ideally, teens should develop an understanding of money and the value of work before obtaining a credit card.
Credit cards should be viewed as a convenience and not an extension of income the goal is for teens to learn to use credit cards as a tool, not as a crutch. Tip no 3: once the training wheels are off, get a retail store or local bank credit card once your teens have mastered the basics of keeping track of money in the bank, a credit card can be introduced parents can apply for a joint credit card at a retail store or local bank.
One way that parents could help avoid this problem is to go over the credit card bill each month with their teen and make sure that the spending is appropriate and under control there was a time that i would have said that teens should never have a credit card, but in the last year or so my perspective has changed a little bit. If your teens have a job or gets an allowance, a great way to teach them responsibility is to have them pay partial or full balances on their credit cards doing so will teach them how to appreciate the value of money. Why should these independent and self-motivated individuals be required to find someone to co-sign with them for a credit card on the other side of the coin is the lessons learned from credit card ownership, which might actually be easier before age twenty one for many. Why teens get in trouble with credit cards more people between the ages of 20 to 24 years declare bankruptcy than graduate from college, a fact that has a lot to do with credit card debt in a society in which even middle schoolers have access to credit cards, very few young people understand how the cards work.
The credit card marketers have done such a thorough job that a credit card is seen as a rite of passage into adulthood american teens view themselves as adults if they have a credit card, a cell phone and a driver's license.
Giving your teen a credit card can certainly have it share of problems teenagers often times don’t understand that credit is a loan and not money, so they tend to max out their cards quickly because parents’ names are on credit cards, teenagers may have a tendency to not take full responsibility for their spending habits when using the cards since they are not under their name. Although teenagers should demonstrate responsibility before getting a credit card, the real learning curve of financial responsibility begins when they have one understanding how credit works and the process of paying bills is a monumental step for any person. Prepaid credit cards are a good alternative to regular credit cards for teens and can serve as a type of training wheels to ease young people into using credit wisely visa buxx is one such card, which allows parents to limit spending by funding the credit card via transfers from their checking account to the card.
A secured credit card: if you are at least 18 years old and do not qualify for a student credit card, a secured credit card will be the next best option you will have to make a deposit to open the card and be patient.
American teenagers spend more than $175 billion a year, or an average of $103 a week eleven percent have their own credit cards, and another 10 percent have access to their parents’ plastic once young people enter college, however, the credit cycle really begins. Peer pressure can cause teenagers to spend more money if teens had a credit card, they can spend as much money, that they do not have,as they want peer pressure kicks in because most teens would do anything not to be humiliated for example, if a whole bunch of teens have $200, another teen will.