Have you ever been wondering whether your child is ready to have their own credit card? Here are three signs that teenagers are mature enough to handle money with responsibility to help build their own credit history.
Giving a credit card to your children without them knowing the process of how to use it responsibly, can be very dangerous and perilous. Here are three ways to tell if your child is ready for their first credit card as young people, and if not, how to prepare for it.
If your child is usually sincere and honest about shopping and spending, then it is a good sign that he or she is ready for having a credit card. You can try giving a certain amount of money for a necessary item. For example, if they need new shoes for school or college, give some money.
But put a limit on the budget and send them for shopping. If what they have spend are above your budget or purchase some additional items, then it is an indication that they are not very disciplined for their own credit card.
If your child receives an allowance or have a part-time job, then they can have access to their own funds. However, it is important to know how they handle those funds. You have to know whether they save any money or just spend everything they get/earn. If your child is a careless spender, a credit card may only encourage bad habits and bad spending.
Instead, you can help your children learn the importance of budgeting, saving and spending wisely to pay for their needs. Once they show an improvement in their behaviour of spending for a few months, it will be wise to reconsider the idea of giving them a credit card.
How is your child with deadlines? Does your children constantly forgetting deadlines and dates of important tasks? If they are not in a position to fulfill something as simple as a previously assigned tasks, then they may not be willing and be responsible for making payments on time.
If your child is not in a position to meet payment deadlines or dates for important tasks, then you must let them learn and understand that they have to develop the habit of punctuality and organizing things before they can get their first credit card.
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I think that a debit card is a better option, but I also think they should have a good grasp of the cash in general.
My 9 year old son has a debit card but he never had the chance to use it because he doesn't even know how to withdraw money from the ATM machine.
It is one of those rules in the bank that to open a saving account, the child has to apply for a debit card.
I strongly do not encourage teens to have credit card or debit card until they had started to work physically not virtually.
When they work for money, they will learn that money isn't isn't to earn but easy to spend.
Hence, money does not fall down from your money tree daddy.
My teenager does not have any of these cards.
When she thinks that she needed one, she will have to consider all the consequences and responsibilities that this post had mentioned.
Me neither, I don't even have any of these cards!!
Oh yes, shared your post at my FB and Twitter, Thumbs up
I tend to agree that a debit card is the better place to start. The child can be bought store gift cards or Visa debit cards in small denominations at first, and then allowed more money once some responsible spending is demonstrated.
You make an excellent point that respect for deadlines is a factor to consider before obtaining a credit card. This would apply to people of any age.