Should teens and college students have credit cards menu search go go investing basics stocks real estate value investing should teens and college students have credit cards good credit habits start at a young age discuss the reasons why it’s important to have a credit card and credit history also, you should help them find a. Unsecured credit card: even with the recent card act, which places stricter underwriting policies on credit card holders under the age of 21, some teens may be eligible to receive an unsecured credit card a teen with high enough income can get an unsecured credit card in his name. Prepare your teens for the world of plastic by educating them on the upsides and downsides of credit card use teenagers love to spend money credit card companies have taken notice and are doing everything to lure them in. Pros of a teenager having a credit card in my own personal opinion on this topic, having a credit card is a big step and responsibility for a person a person should have the topic of having a credit card well-processed and examined in their minds because there may be a person out there that is over 21 and is not still capable, knowledgeable, and responsible enough to handle the idea of having a credit card. Educating teens about credit 38 percent of youngsters between 12 and 19 feel that credit cards should be used only by adults, and only 5 percent of teens believe credit card debt is no.
But teens often don't even grasp the abstraction of credit — and that eventually, you have to earn the money to pay the balance on the card ideally, teens should develop an understanding of money and the value of work before obtaining a credit card. Before handing a teenager a credit card, they should first have experience using a checking account of their own they should be able to write checks, balance their checkbook, and maintain the checkbook register. A reader recently pointed me towards an interesting article at msn moneycentral on the topic of restricting the access that teenagers have to credit cards.
Giving credit cards to teenagers is a touchy subject some people feel that handing a credit card to a teenager is like giving them permission to go out on a very large spending spree, or advocating that they go into debt. “credit card companies have been pursuing teenagers and designing credit cards so they can ‘learn’ about the credit system,” says gary herman, president of consolidated credit “and although most teenagers don’t fully understand the repercussions of using a credit card and the impact it can have on their future financial situations, more teens are working and are spending their own money. A person should have the topic of having a credit card well-processed and examined in their minds because there may be a person out there that is over 21 and is not still capable, knowledgeable, and responsible enough to handle the idea of having a credit card. If you want your children to have good spending habits and resist the temptation that can come with having a credit card, it's up to you to educate them the balance should teens and college students have credit cards.
Credit cards should be viewed as a convenience, not an extension of income the goal is for teens to learn to use credit as a tool, not as a crutch. Why teens get in trouble with credit cards more people between the ages of 20 to 24 years declare bankruptcy than graduate from college, a fact that has a lot to do with credit card debt in a society in which even middle schoolers have access to credit cards, very few young people understand how the cards work.
Should teenagers have a credit card it depends on who you ask take a look with me at some of the pros and cons of giving a teen a credit card. Disadvantages of teenagers having credit cards by linda ray you have to earn the money to pay the balance on the card ideally, teens should develop an understanding of money and the value of work before obtaining a credit card creates debt. Giving your teen a credit card can certainly have it share of problems teenagers often times don’t understand that credit is a loan and not money, so they tend to max out their cards quickly because parents’ names are on credit cards, teenagers may have a tendency to not take full responsibility for their spending habits when using the cards since they are not under their name.
And a credit card in the hands of a teenager may tempt him to use it more for pleasure than necessity it's not that a teen shouldn't have one, but it's best to keep a watchful eye on your account statements if you've designated your teenager as a user. Another reason teenagers should have a credit card is because it will teach them to be responsible with money this can happen with a card that has limits on it if the money is spent fast, the parent shouldn't give the teen anymore credit on the card.
Credit cards should be viewed as a convenience and not an extension of income the goal is for teens to learn to use credit cards as a tool, not as a crutch. The credit card marketers have done such a thorough job that a credit card is seen as a rite of passage into adulthood american teens view themselves as adults if they have a credit card, a cell phone and a driver's license.
When i was a new college freshman, i signed up for a credit card in exchange for a t-shirt, then i began to use it for all kinds of stuff – video games and so on in short, i acted like a fool with that credit card – a card i would have never had if this act had been in place.