Have you ever thought your child a credit card?
If you want to start a friendly debate, ask a group of parents when they should give a child a credit card.
The answers will likely vary "when it can pay for it" 105 years. Some parents say, "Never!"
Every child and every situation is different, however. Learn to use wisely a credit card can be compared to learning to use a kitchen knife. You could have a free kitchen knife, but that would not be very practical. You can prohibit your child to use a knife until he was 21. Or you can let it start using small knives, under supervision, and increase the authorization for him to use knives increasingly autonomous, as it matures.
Using the kitchen knife in principle, to consider these factors before you hand over the plastic to your child :?
Does your child need to use a credit card
If any child purchases can be paid with the money, why even bother with a credit card? Children can learn the budgets never use plastic.
Indeed, there is something to say for first budgets with money and envelopes. It helps keep it real
If your child buys things online, is traveling without you, or for some other reason needs to use a credit card, you may want -. Partly for your own sake - that your child had a map.
It is better to let a use of 16, yours.
are you willing to co-sign or be the primary account holder, if your child is under 21?
Children under 18 can not enter into a credit card agreement. The only way they can legally have a credit card to be an authorized user on the card of someone else.
If you want your child to have a separate card, you will need to open one in your own name and add him as an authorized user.
in 2010, a person between 18 and 21 must have a co-signer on a credit card, unless the person can show how they will pay the balance.
Have you taught your child how to use a credit card?
Before your child gets the first card, make sure he or she understands grace periods, interest costs, and how to avoid paying additional fees.
Talk to your kids about identity theft and how to avoid it.
Explain how important it is to report a lost card immediately.
Before a child carries a credit card, he must be aware of the responsibilities and risks.
If you use credit cards as a short-term payment tools, not as a way to live beyond your means, you have set a good example for your children to follow.
your child may have to pay the credit card bill
? using the first credit card can be a great learning experience. Most children are not, however, need help to learn to spend ,. He is the pay that takes practice.
Even if the child pays the bill with an allowance or earned money by doing extra work, it is important that he or she pay the bill.
Otherwise, it is not really account for the child. It's just a way for them to spend money.
Can you limit financial risk?
You would not give a child a large knife, wickedly sharp the first time he tries to cut a cucumber. A small paring knife, used with a cutting board, would limit the potential damage. It is the same with credit.
Do not let your child has access to more credit than he or she could pay off in a short time.
Your child is trustworthy?
Some children could trust with your life at an early age. Others may be distracted or have lessons to learn about reliability.
Nobody's perfect, but if you are unsure that your child is ready for the responsibility of a credit card account, just wait.
Do you talk about credit card debt with your kids
photo credit: _Dinkel_ via photopin cc
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