Teaching teenagers how to save and spend responsibly is one thing. But teaching them how to use a credit card? That presents a host of new challenges, with the potential for slipups that could have damaging long-term effects.
To apply for a credit card, anyone younger than 21 must either have a cosigner or verifiable income that proves they have the means to repay the credit.With stricter requirements in place today for, teenagers interested in using credit must rely on their parents. Before handing them a credit card, though, parents can gauge their child’s financial responsibility by seeing how well they manage a checking account.
Many banks offer checking accounts for applicants as young as 13, and they come with monitoring tools for parents. If the checking account is used responsibly, parents can start discussions with their teenager about credit cards.
Read this article to learn more about how parents can measure their child’s responsibility before handing them a credit card.