For many, a credit card is a financial blessing. Not only is it convenient, as it can enable you to purchase things when you want or need them but can't necessarily afford them at the moment, but it can also help you budget responsibly while building credit. The bad news is that a credit card can have disastrous effects if you purchase on a whim and don't curb your spending.
Everyone from Dave Ramsey to your neighbor down the street has an opinion about whether teenagers should have credit cards. But the fact is many already do. If you want to introduce your child to the world of credit while being mindful of its dangers, keep reading.
In the long-running sitcom Happy DaysRalph, Potsie, and Richie had their hands full dealing with school, friends, and social activities. Throwing each of them a credit card would've put a whole new slant on those happy high school years. Credit card issuers are reaching out to teenagers and their parents with youth-friendly credit card products. Whether it's a prepaid card, or one associated with mom's account, these companies say that their products offer teens an early life lesson in financial management.
Should teens have credit cards? Teens today are consumers, pumping billions of dollars into the economy, so there's something to be said about teaching them to use credit cards responsibly before they go off to college or out on their own. Credit cards offer convenience, but their main purpose should be to establish a good credit history so when the time comes your teen can:.
This is why many parents of teens consider giving their child a credit card to use in case of emergency. But there are a lot of factors to consider. Take a look at the information below to decide if this move is right for your family.
The summer I turned 18, my parents sat me down and had the credit card talk. Then they explained why it was important to be smart with my credit — and left the rest up to me. I received and paid the bills on my own.
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There are people who love credit cards and people who hate them. People on both sides of the credit card fence have a point. With all the benefits that come along with using credit cards, there are some downsides that may turn you off.
Teens under 18 need parental permission to get a credit card -- often with the parent required to co-sign for the credit. For many parents, the notion of helping you get a credit card when you are under 18 is scary. Despite the risks, credit cards do offer some tangible financial advantages for young people.