Credit Card Usage and Your Teen – The Upside

Plastic. What would we do without it? Credit cards are easy to use – sometimes a little too easy – but not all that simple.

Without proper skills and information, improper management of credit cards can get most people into deep financial trouble.

When used incorrectly, credit cards can get most people in over their heads. When it comes to your teen, things can go from bad to worse pretty quickly.

There’s definitely an upside to using credit cards. Here are some Credit Card Basics to share with your teen or older college-age child:

Theft Protection
Credit cards provide protection against theft of cash. If your teen carries a backpack, it’s likely at some point they’ll put it down. They may leave it at their seat at the library, or when they use the restroom at a restaurant. Most of the time, this is probably safe, but thieves thrive on just such opportunities to steal. Cash cannot be replaced. Use of a stolen credit card can be stopped dead in its tracks.

Safety Net
Having a credit card ensures that your child can purchase items and services they need, when they need them, even if they don’t have enough cash. If your child gets hungry, or if they need to pay for a service, a credit card provides security. Credit cards can be lifesavers for paying for gas, car repairs, emergency phone calls, etc.

Credit History
When managed correctly, credit cards can build up a solid credit history for the future. In these times especially, good credit is essential, and starting early helps your child move responsibly into the future.

Money Management Tool
When used responsibly, teens can end up a smarter money manager. They can learn how to spend wisely. Using a credit card can be a part of overall education as your child moves into adulthood and independence.