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Thread: Should kids carry credit cards?

  1. #1
    Gladiator
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    Should kids carry credit cards?

    Tales of other people's credit woes can be a learning tool for your children. Whether or not you trust them with plastic, it's important to teach the pros and cons of credit.

    By MarketWatch
    Now is a great time to teach your children how to manage money. As lawmakers debate how to reform the nation's banking system and news stories detail the travails of Americans who took on too much debt, parents can use examples in the current economy as a way to talk to kids about the risks of credit.


    Signs you carry too much debt
    "Look at all the news stories that show people who have lost their homes from too much debt or are incurring substantial interest charges or who have bad credit and can't get an apartment or job. It's a wonderful way for parents to teach their kids about credit or debt," said Ric Edelman, an author and financial adviser.

    Estimate your credit scores in minutes
    But parents may be wary of introducing their kids to credit cards, especially after hearing horror stories of young adults with several cards and thousands of dollars in debt before even graduating from college.
    Continue..Teach your children about risks of credit card debt - MSN Money

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    Gladiator
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    13 tips on using Credit cards wisely..Your 5-minute guide to credit cards - MSN Money

  3. #3
    LB
    Peace Love n Pretty Tings LB is offline
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    I think it is excellent practice for kids BEFORE they hit post-secondary and can get credit for the first time on their own with high limits.

    What I dont understand is why parents who do give their younger kids cards, dont keep lower limits on them. Its dumb to think that the kid wont max things out if given half a chance.

    if the limits are very low, and you arrange that part if not all of their allowance goes towards paying off items they purchase; and you check their statement each month when you review your own; the kids will learn good habits well before college.
    ~ If you make the mountain any bigger you wont be able to move it later

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    Quote Originally Posted by Ladybug View Post
    I think it is excellent practice for kids BEFORE they hit post-secondary and can get credit for the first time on their own with high limits.

    What I dont understand is why parents who do give their younger kids cards, dont keep lower limits on them. Its dumb to think that the kid wont max things out if given half a chance.

    if the limits are very low, and you arrange that part if not all of their allowance goes towards paying off items they purchase; and you check their statement each month when you review your own; the kids will learn good habits well before college.
    Do you agree regardless of how low the limit there is still the realistic possibility of a kid maxing out the creit card ?

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    LB
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    Quote Originally Posted by Lieutenant View Post
    Do you agree regardless of how low the limit there is still the realistic possibility of a kid maxing out the creit card ?
    yeah definitely. Kids will be kids.

    But if they do so then there are consequences. Plus I am not a believer in kids get credit and parents pay the whole bill. No way. Making the kids responsible for a percentage of whatever they charge is part of the learning process.

    If the limit is say 200.00 and you say that 30% or whatever number they must pay off with their allowance or however you allow them to earn pocket money, slowly teaches them to manage money and also the responsibililty of incurring interest etc.

    The biggest problem I say when I got to university is that the second u stepped into the bookstore, there were all these credit vendors providing high credit for multiple cards to students who they believed their future earning power will benefit them, but prior to this the kids have had ZERO experience with credit and get themselves into all kinds of problems.

    So parents gotta start somewhere cause some of these basic things arent taught in school anyways.
    ~ If you make the mountain any bigger you wont be able to move it later

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    where de crix Oneshot's Avatar Oneshot is offline
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    Quote Originally Posted by Ladybug View Post
    yeah definitely. Kids will be kids.

    But if they do so then there are consequences. Plus I am not a believer in kids get credit and parents pay the whole bill. No way. Making the kids responsible for a percentage of whatever they charge is part of the learning process.

    If the limit is say 200.00 and you say that 30% or whatever number they must pay off with their allowance or however you allow them to earn pocket money, slowly teaches them to manage money and also the responsibililty of incurring interest etc.

    The biggest problem I say when I got to university is that the second u stepped into the bookstore, there were all these credit vendors providing high credit for multiple cards to students who they believed their future earning power will benefit them, but prior to this the kids have had ZERO experience with credit and get themselves into all kinds of problems.


    So parents gotta start somewhere cause some of these basic things arent taught in school anyways.
    ultimate hustle after school loans..

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    where de crix Oneshot's Avatar Oneshot is offline
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    Quote Originally Posted by Lieutenant View Post
    Do you agree regardless of how low the limit there is still the realistic possibility of a kid maxing out the creit card ?
    let dem feel the pain.. jed let us face it.. half the knowledge we have as adults is because of the mistakes we made and continue make

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    Registered User BacchanalDiva's Avatar BacchanalDiva is offline
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    Quote Originally Posted by Ladybug View Post
    yeah definitely. Kids will be kids.

    But if they do so then there are consequences. Plus I am not a believer in kids get credit and parents pay the whole bill. No way. Making the kids responsible for a percentage of whatever they charge is part of the learning process.

    If the limit is say 200.00 and you say that 30% or whatever number they must pay off with their allowance or however you allow them to earn pocket money, slowly teaches them to manage money and also the responsibililty of incurring interest etc.

    The biggest problem I say when I got to university is that the second u stepped into the bookstore, there were all these credit vendors providing high credit for multiple cards to students who they believed their future earning power will benefit them, but prior to this the kids have had ZERO experience with credit and get themselves into all kinds of problems.

    So parents gotta start somewhere cause some of these basic things arent taught in school anyways.
    This is soooo true! My mom never taught me anything about credit and when I hit college the man tell me fill out the thing and I get this cute water bottle so I fill it out, plastic comes in the mail and to me is FREE MONEY YAAAYYY! Needless to say I learned the hard way. I still have that long expired Discover card as a reminder My son on the other hand has been well versed and learning to used credit cards responsibly for years.
    "Those who are able to see beyond the shadows and lies of their culture will never be understood, let alone believed, by the masses." -Plato

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