Boy, things sure have changed since I was a teenager. According to a study performed by the Jump$tart Coalition for Financial Literacy, a whopping 31.8% of high school seniors are carrying credit cards. About half of these cards are in the high schooler’s name, while the remainder are established on their parent’s accounts. Either way, teenagers have much easier access to credit, good or bad, depending upon your perspective
But times are changing. We’re living in a world that’s become dependent upon credit cards. Just about anything that you want can quite literally be purchased with a credit card. The fact that so many teenagers are using them is just another indication that we’re slowly but surely evolving into a cashless society.
As a parent myself, I am on board with the idea of helping my kids get a credit card once they become teenagers. After all, getting a credit card in your name is a great way to start building a credit history. In addition, by helping my children with their first credit card experience, I can help show them how to manage their finances. Hopefully, with my assistance, they’ll be ready to handle them responsibly once they leave the nest.
While I think it’s a good idea to help my children with their first card, I still think it’s important to put some safety nets in place. For example, the credit limit needs to stay low. That way, I don’t have to worry about overspending and having my kids dig themselves, or me for that matter, into an overwhelming pile of debt. Similarly, they will have to be responsible for repaying the credit card. That way, they realize that the credit card is not some sort of magic money machine!
What do you think? Should teenagers have credit cards or should they wait until they are “older” and “more responsible”?
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