Teenage Credit Cards

By: Mark Mason

Every teenager wants a credit card. Teenage credit cards are those cards which are signed by a teen and an adult, the adult would be a co-signer and in charge of making sure payment is made for the card. In earlier days credit cards were given only to adults after verifying their income details. But in this era, credit cards are now introduced for boys and girls of younger age, i.e. below 18 years of age. This type of card is very famous among students of high school, and is on the rise.

This card can be very useful for teens. It can give teens some banking knowledge,and help them to learn about credit etc. Of course this is done under the guidance of their parents. The term credit is very important, and understanding this term is very important, as it is very precious for one's financial stability. This will ensure that students are more responsible with their spending rather than wasting money. If proper guidance is given to the teen it will ensure that they save their money and maintain proper budgeting.

Therefore, in the future if the teen has a proper credit history, then he or she would be able to get various types of loans, such as, automobile loans, home loans, etc. Hence, it will help the teen to be more responsible towards money and investments when they've really earned it, and it will drive them to the correct way of saving and being independent. When your teenager becomes an adult, she will be able to operate smoothly in a complex financial world becuase of the experience gained with teen credit.

Teen credit cards also have some disadvantages, one being that it could steer the teen to extra and excess spending. This type of card won't let them understand, or realize the harmful effects of improper spending if they have no proper guidance when spending. If the amount of spending goes beyond the credit limit, then the parents will have to pay back the excess money to the providers. This type of card may make the children less responsible in thinking they have someone else's money to spend and they don't have to pay their own bill. Hence, parents should keep a certain credit limit to help avoid damages.

As a parent, it is very important to carefully weigh the pros and cons of giving your young teenage adult one or more credit cards guarenteed by your good name. No one knows your son or daughter better than you do. Therefore, no one is in a better position to judge if your son or daughter is ready for the responsibility of a credit card. It is a big responsibility, but it can be an excellent learning experience. Remember that parenting requires oversight and patience in all things, including personal finance.

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