Credit Cards Weblog

A recent poll of Junior Achievement program attending teenagers found that 1 in 9 have credit cards. Some of them got their first card as young as 13 or 14. Having credit at a young age in and of itself is not necessarily a good or a bad thing. How it is used is far more important. The study found that 82% pay off their full balance each month while 18% carry over a monthly balance. Teaching a child appropriate use of credit can help them improve their credit scores while they are young, and make them more responsible consumers when they grow older. The Sun Sentinel reports:

The key, Levine said, is the involvement of parents in teaching children how to use both credit and debit cards -- and in monitoring their children's use of plastic. "You don't give a child a musical instrument and say, `Plunk around on this for a while and see if you can learn to play,'" she said. " The act of giving kids a credit card or a debit card isn't going to give them good money management habits. There has to be teaching and practicing." Levine suggests parents who do get cards for their children sit down and go over their monthly statements, talking about things like interest rates, the importance of paying on time and spending habits.