Although most credit cards have been designed for college students but it is possible for a high school student to get one too, but obviously there are many pros and cons of getting one.
Help them learn the basics of money management
We all know that the teenage is the best age to learn, and it may be the best to learn about the basics of money management to help in future life. As teenagers, many kids go out and get their first jobs, or are otherwise earning income from allowances or babysitting. It’s the perfect time for parents to help them learn about the basics of financial responsibility, and train them to spend according to their limits.
Credit cards for teenagers
Although it was difficult for teenagers to get a credit card some years ago, many credit card companies are now willing to give them cards. Credit cards for teenagers include features like parental control and digital ‘allowances’. It may be quite hard for parents to give their teenager a credit card, but a credit card makes a good educational financial experience for your child before it’s too late for you to help them become financially responsible individuals.
Teach Them About Good Credit
It is better to teach teenagers about money management before they get themselves into trouble by getting in debt. Teaching them at a younger age can prevent them from over spending once they’re on their own. According to a survey, the average freshmen college student has over $1,500 in credit card debt; and once a student realizes how easy it is to “get what they want, now”, it becomes a habit to use credit cards to buy the things they want while in college. And this leads to the student getting stuck in debt even before he graduates. For which, he has to work two to three jobs in order to pay back the money, even before starting his professional life.
Options Available
There are other options available too if you don’t want your teenager to establish a credit history at this time, and simply want a way to teach the basics of money management. You can get him/her a prepaid debit card with a Visa or MasterCard logo. Some of these cards may have annual fees or transaction fees, which may give you another opportunity to show your child that using a credit card isn’t the same as buying with cash. You also have the choice of signing your teen up for a checking account with debit card; or have them as an authorized user of a credit card account you already have. Yu can also open a new credit card account with a low limit and put your teen on as a cardholder.
Gives Teen Access to Emergency Money.
By giving you child a credit card, you will remain calm and satisfied that they will be able to handle an emergency that requires access to money on their own. It is possible that sometimes they may have a sudden need for cash in case if a car breaks down and they need to be towed off the highway, or for long distance phone calls for example.
Make sure that you spend some time investigating the various options available to you before choosing an option if you decide you are ready to teach your teenager the basics of money management and credit. And no matter what option you chose, make sure that you spend enough time with your teenagers to educate him about the responsibility and the use of credit card.
