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Things to Consider before Giving Your Teens Credit Cards

teens credit card

Parents only want the best for their children and they will do whatever they can to help their child prepared for their future, especially in terms of finances. If you are thinking of giving your teen a credit card account, you may have good intentions for planning to do it so, but it is really the best decision to make?


Ideally you want to teach your teen the responsibility of handling money wisely. Those parents who choose to give their teen son or daughter a credit card account wanted to stress the importance of having a good credit history and foster good spending habits. However, this is a huge responsibility for teens, and irresponsible teens can cause headaches and damaged to your own credit history. If you’re really decided to give your teen a credit card account, see if the pros outweigh the cons.


Benefit: Giving your teen son or daughter a credit card helps to build his/her credit score. There is no better way than building a good credit score than opening a credit card account. In fact, the sooner you open a credit card account for your teen, the better as the longer the credit history increases credit score.


Risk: But, you need to keep in mind that credit card account providers do not issue accounts to individuals under the age of 21. Teens can only have credit cards under your personal credit card account as an authorized user.


Benefit: Once teens have received the bills and pay them a few times, they may exercise restraints in shopping and learn to separate their needs and wants. Teens can learn more about deadlines, minimum payments, and how creditors charge interest retest that make them pay more in longer period of time.

Risk: If your teen son or daughter do not fully understand the concept of losing money trough interest payment and fees, you may end up paying high fees charged by your creditor, damaging your credit history.


Benefit: You monitor the spending activity of your teen. Since the credit card account of your teen is under your authorization, you can monitor what your teen us buying. Credit cards are the best tools to monitor that spending activities of your child. This can give you insight into the life of you may not know.


Risk: Giving your teen his/her own credit card account allows him/her to shop online and it is never denying that shopping online is very risky, especially for teens. Even if you can monitor the purchases made by your child, you’ll never know what they bough until it already happened.


Benefit: Teens learn how to budget their money. The true purpose of parents to giving their teens a credit card is to allow their child to learn budgeting skills and be responsible for their spending habits. Ideally, teens will not lonely learn how to spend wisely, but also to never miss payments.


Risk: Do not be surprised if your teen struggles in managing credit card debts, as many adults nowadays do. if you’re willing to sacrifice your own credit history to teach your teen a lesson, then there’s no reason to do not give him/her a credit card.

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