Should I get my teenager a credit card
Credit cards for teenagers-minors, under the age of eighteen, can actually be a very good idea. They are safer to carry than cash. If lost or stolen, they can quickly be replaced and in many cases, on stolen cards, all or most of the money is usually returned to the user. There are financial safety nets set up through the issuing companies’. If unusual spending occurs, many times they will call and make sure that the spending was from the user. Also, a credit card can help if a teenager is in an unexpected circumstance where funds are needed immediately, such as their car breaking down or an emergency.
Most teenagers are very responsible, especially in this day and age of high technology. Teenagers have learned to handle complex situations and adjust to more circumstances than ever before. A teen who has handled other responsibilities in the past, shows an insight into how they will handle new responsibilities in the future. A responsible teenager who has handled the use of a cell phone correctly, who has not lost it and who usually follow the parents’ rules about its usage, would be a good candidate for carrying a credit or debit card. They have expressed their maturity through adequate use of something of value.
A prepaid debit card can also be another good option. If a credit card for a teenager is not what is wanted, than this could be a first step in introducing a teen into the financial world of credit. A certain amount of funds can be loaded onto the card and after tracking a teen’ financial use of it for a set period of time, determinations can be made as to their maturity level. A decision can then be made as to the use of an actual credit card.