• Before you introduce the concept of credit cards to your child, first introduce them to basic banking concepts and how to manage their money with savings and checking accounts. Credit cards should be regarded as secondary tools to assist with money management.
• Ask yourself if your teen is ready for a credit card. Can he manage his own money? Is he responsible with it?
• Make sure your child understands the ups and downs of having and using a credit card. Discuss late payments, interest and the impact of credit reports.
• Look at the types of credit cards available, as well as your child’s readiness, and determine which card would work best.
• You will want to establish guidelines early on as to use of any card you give your child. Determine what purchases will be allowed, and what qualifies as an “emergency.”
• Work with your child to help him understand that the bill should be paid in full each month, explaining the effect that minimum payments and interest will have on his bill.
• Make sure you have access to your child’s card so that you can monitor not only the use of it but the payments made as well.
• If your child gets in over his head, consider the message you send out if you bail him out.
Source: Should I Give My Teen A Credit Card?
STUDENT CREDIT CARD RESOURCES
No comments:
Post a Comment