Credit Cards Becoming Popular Among Teenagers |
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Nowadays the average age of the credit cards generation is getting lower. In a recent poll conducted for teenagers, it was found that more than 11 percent were carrying credit cards, some of them were even as young as 13 or 14 years. In addition, the poll found out that three out of 10 teenagers have checking accounts, and it's likely that many of these checking accounts are linked to automated teller machines, with debit cards. David, a financial expert, revealed that he was a little surprised by the large number of teenagers with credit cards. Financial experts are concerned about the growing use of credit cards by teens, though they are generally co-signed by parents, until a child is 18 or older. They echo David, who thinks that children of 13 and 14 years are too young to understand the implications of a credit card. However, to have credit cards is not necessarily a terrible thing, as long as these teenagers have been given an education on the relevant financial principles. But the same poll revealed that while 82% of the teen credit cards users paid their bills in full every month, 18% said they carried balances over, a practice that has gotten a lot of their parents in trouble. So, it really depends on individual kids and how mature they are. But financial experts agree that regardless of how soon you think a child matures, parental involvement is a necessity. Parents should teach children how to use both debit and credit cards with responsibility. They also need to be monitored, and their spending habits closely watched. Giving a child a credit card should be like giving him or her, an expensive musical instrument. You don't give a child a musical instrument and say, "let's see if you can learn to play on your own." Giving kids credit cards or debit cards should be accompanied by lessons in good money management habits. Experts suggest that parents who get credit cards for children should sit down and go over their monthly statements. They should also talk to the children about things, like interest rates, the importance of paying on time and spending habits in general. The kids should learn to manage money, while they're still at home and not wait until they're 18 and off to college or work. And responsible parents will create responsible children. Some feel that giving kids debit cards are a way of preparing them for credit cards, later in life. Heather, a teenager with credit cards, admits that few of her friends have debit cards. But she likes the convenience of using credit cards when she needs cash and sees it as a measure of her maturity. She believes that the important thing is to give kids the responsibility for themselves. And there are many banks in the United States that sponsor several programs to help teenagers learn to manage money. Lindsay Rotsell, a marketing analyst, says that when children come with their parents to open accounts, credit union representatives usually explain, how to maintain check registers, read statements and use debit and credit cards. They also offer to help them go through their first statement and help them reconcile it. The credit union also offers checking and savings accounts for teens as young as 13. But they restrict debit and credit cards to those who are at least 16 years or older. So, most people, including teenagers, feel that teenagers who handle their credit cards accounts responsibilities get a start at building a level of confidence with their parents. And it prepares them for future responsibilities like when they're seeking parental help for an auto loan or college financing. Even David agrees that most teen customers handle their credit cards well and even go to the extent of linking them to the credit union's online banking and bill paying site. So, there is not a single pitfall to teenagers using credit cards, if they know how to use it. |
