Many parents may cringe at the thought of handing over their plastic to their high school student but the reality is that 
credit cards may be a great financial lesson learned for youth. Managing money is not a subject frequently taught in high schools across the country, thus when young adults go off to college and out in the real world, many are not equipped as they should be to handle credit or money matters.
Teaching your children about money and financial responsibilities is something every parent should consider seriously, otherwise kids will have not many other resources to learn from before making some pretty big financial mistakes. Once a child is of legitimate age, they can apply for their own credit card. If they are doing so without a good education of credit, they could potentially be headed for a big credit disaster.
Here are some tips and considerations to make when deciding the credit-worthiness of your high school–aged child:
Talking to your kids having your teen get a jump on a good credit history at a young age is a good start for a better financial life ahead. Kids that understand what a credit report is and how it can affect them for the rest of their lives may be more apt to use credit wisely once they learn that there are serious consequences
Kids need to understand that credit is not free money. Any purchases made need to have a back up source for pay off. If you child wants a credit card, they should have some source of income that keeps them responsible and able to pay for what they charge.
Credit cards for a teen do not have to have an excessive amount of credit. If your teen with you as a cosigner qualifies for a $1,500 limit, you can request that the amount be reduced to something more reasonable. Set a credit limit between $300-$500.
When seeking a credit card for your high school student, search for card companies that offer card programs specifically for high school-aged kids. Include your child in on the research process so they can have a basic understanding of what options are available and teach them how credit cards differ from each other.
Consider looking at prepaid credit cards to start out. Parents who want to teach kids about the finer points of credit and money management but may not be able to act as a cosigner for the credit card, may want to consider looking at prepaid credit cards to start out. Prepaid cards require a deposit of your money into the issuer’s account. Any purchases made will be deducted from the balance available. When the card’s funds are depleted, they will need to be replenished. A prepaid credit card company will report to the credit reporting bureaus and in turn will build up the teens credit. As their credit history is built and the student gets older, they will be able to eventually apply for a conventional credit card with a solid credit history.
High school students will one day become responsible for themselves but with a parent’s guidance, they can grow up to be financially responsible adults, capable of using a credit card and managing their finances. Starting out with a credit card designed for high school students, you will be able to provide your child with a head start on a real world education.
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