Teen Credit Cards – A Smart Idea?

teenager shopping online with a credit cardShould teenagers have credit cards? This is a question that every parent is facing these days and there is more pressure on this issue than ever.

As in any debate or issue, there are two very relevant sides to the issue and both sides have some exceedingly valid arguments.

On the one hand, kids having credit cards should teach them how to budget money and make sound financial decisions about money. They learn that if they want something and are responsible enough to work to have it, they can get it now and pay for it later. The down side of this is that peer pressure these days is at an all time high for teens and if they are just hanging out at the mall with all their friends and everyone has one thing and he does not, the credit card allows him to bend to that pressure and go pick up that $300 coat or $150 pair of jeans that everyone else is wearing and he has to have to fit in and be cool.

Without that credit card the teen would have to grin and bear it and then figure a way to talk mom and dad into the purchase. With the credit card, it can get tucked away on the bill and the parents may not ever even see it. Yes, there are still some folks out there that do NOT read every statement they get from Credit Card companies.

A credit card is nice to have for the teen for emergencies. Say they are at a big party and the alcohol and illicit items begin to show up. The teen can then call a cab company and use the card to get a secure ride home and not have to bother mom and dad with the dreaded middle of the night wake up call to come and rescue him from the party, or worse yet, a holding cell at juvenile detention.

It can also work the other way, if at that same party someone gets the idea that pizza would be nice, it’s way too easy for your card carrying teenager to call up the pizza delivery place and put a couple dozen pizzas on the plastic.

So what is a parent to do with this dilemma? You could hope that you have educated them well enough that they won’t go crazy. But that’s not very re-assuring. A better option might well be the Pre Loaded Debit cards. You can buy them almost anywhere now days and load on what you allow them to spend, or even the allowance, if you do that for them, for the month and let THEM figure out how to handle the card.

If they go crazy with it, the card will stop them when it’s empty, you can explain to them that if the card should reach zero the person swiping the card for them will inform them that the card was declined and they will have to figure out how to explain that to the friends.

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Comments on Teen Credit Cards – A Smart Idea? Leave a Comment

March 9, 2008

Anji @ 1:17 pm #

Here in the UK a child can't have a credit card. You have to be eighteen years of age to even be considered for application. So to me it's completely insane to think of a kid/teenager having a credit card. Nuts!

March 10, 2008

Caleb @ 1:46 pm #

Credit cards will ruin their -teens- credit before they even have a chance to establish credit!

Debit cards are the way to go…that way when they run out,they don't incurr financial 'damages' and they learn to live by a budget.

March 18, 2008

KennyG @ 9:32 am #

Responsabilitys come in many ways .teens face a lot of problems with money having a credit card it alaos them to get what they need on the spot .If a teen has car problems and if he or she does not have enough money to pay for the car .they can not go to work and make the money for there lieving . with a credit card they can buy what they need for there car now and then pay for it later and the car will be fix and they can go to work and get pay and then they can go pay the bill because they gat there car fix to go to work.

College is a Big money problem that teens face right when they get out of high school either they dont have enough money to pay for there tuition. and If they do they dont have enough money for there ROOM and BORD .that is why teen should have a credit card so they can get it now and then pay for it later .

February 27, 2010

Steve @ 1:34 pm #

I don't know what's worse, credit cards or cell phones! Texting while driving is taking the lives of many teens. At least credit cards are not killing!

Credit cards for teens is only a good idea with parental supervision. With so many things in life, balance and responsibility are key.

Steve

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