I was watching Good Morning America this morning when an interesting segment came on about whether parents should give their children access to credit cards. I was surprised to hear that an overwhelming majority (I believe it was something like 81%) said no. Good Morning America had Melody Hobson on to discuss her opinion and I fully agree with everything she had to say. If you didn’t see the segment, these are my feelings on the topic (most of which coincide with Melody’s).
First of all, let me say I don’t like credit cards. I rarely use mine and always pay my balance in full at the end of the month. When I do use a credit card it is only for emergencies when I don’t have enough cash in my checking account to use a debit card (my preferred method of payment). For example, when my son had his wisdom teeth pulled I had to pay at the dentist before taking him home. I didn’t have an extra $1000+ in my checking account, so I paid with a credit card. When the credit card bill was due I paid it in full. I never, ever use credit cards to buy things I want but can’t afford!
Nonetheless, I have a credit card (see example above) and gave each one of my sons a credit card when he turned 16 with two very strict rules attached. These rules are:
- Only use the credit card for emergencies.
- Pay the balance in full every month.
Notice how the rules I set for my sons’ credit card use are the same ones I live by myself.
How has this worked for me? It has worked extremely well. My sons know how to handle credit before getting their own credit cards. When they do get their own credit cards I doubt they will get into trouble because they have had the benefit of my guidance and their own experience using credit cards.
However, this plan is reliant on a few things that are true in my family, but may not be true in yours. One, I am not in credit card debt and live by the rules I set for my children. Two, I trust my sons, yet I also monitor their credit card usage very closely online. Three, I would take the credit card away immediately if either one of them abused his privileges and they both know it. If you can say the same, then you are a good candidate for this method of teaching your children to use credit cards wisely before they reach adulthood. If you can’t say the same, perhaps you should have an honest conversation with your teenage children about your issues with credit and why you want your children to avoid them. Then maybe you can work together to learn to manage credit cards to your advantage. It isn’t easy, but it is worth it.
