Tuesday, August 14, 2007

Mom? Can I Have a Credit Card??

Do you think it’s a good idea to give your child a credit card??

I remember getting my first credit card in college and it was not a pretty thing. I quickly built up massive debt just from buying clothes and going out to eat. It was nuts but I was also young and didn’t have a clue about managing money. I kind of feel that my two oldest are the same way. It’s time to be more diligent in teaching them about money management.

A big parenting debate that will probably never go away is whether or not to give your child a credit card. I think having a hands-on-experience with managing money is a great way to go. I like the prepaid credit card idea because it can be loaded with a reasonable amount of money and your child can learn money management without the risk of getting into extreme debt.

Using credit cards is not bad…it’s only bad if you mismanage them. I want my kids to know how to be responsible with their money and to be good stewards of what they have been given…
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Andrew said...

Good topic, Jenny. And it really will depend on your kid. Every one is different, some way more responsible than others. I remember having a credit card in college to use "for emergencies." I barely remember using it except maybe to buy some new clothes or books or something, but only after my folks told me to do so. But I know a lot of other kids who went the other way and maxed it out.

There are certain companies out there with credit cards set with personal limits or restrictions on them. So you could get one for your child with a real low limit (I'm thinking $100 or $200 tops, as opposed to the $1500+ max they generally start at).

mak said...

Great idea for a blog. Keep it up!! :-)


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