The ancient Chinese philosopher Lao Tse said, “Give a man a fish and you feed him for a day. Teach him how to fish and you feed him for a lifetime.” The same principle applies to teens and credit cards. Teach them how to use credit responsibly and chances are they’ll enjoy a lifetime of wise money management free from nagging consumer debt.
Of course, teaching kids how to handle credit cards is easier said than done. Here are some proven tips you can adopt as is, or adapt to your particular needs and circumstances.
- Teach them first how to manage the cash they already have. As early as middle school age, kids can grasp budgeting and the concept of either spending all their allowance or cash for school clothes right away, or saving some of it to buy something later. Understanding spending limits is a key step in learning how to control credit spending. But remember to emphasize that once their money is spent, it’s gone. Resist the temptation to slip them extra cash if they discover they missed out on some “must-have” purchase. “Missing out”—or said a better way—”going without” is a learned behavior critical to managing future finances successfully.
- Help them “graduate” to a checking account. By the time your kids are in high school, help them open a checking account so they learn how to write checks, reconcile a bank statement, and avoid overdrafts and bank fees.
- Introduce them to some “plastic training wheels.” Once your kids master the checkbook, a debit card allows them to withdraw funds from an ATM, but it can also be used like a credit card. The good thing is that the charge is deducted directly from the account’s balance, so there’s no lingering credit balance that accrues exorbitant interest. So kids get the experience of using plastic while avoiding the potential pitfalls.
- Ease into credit cards with the prepaid variety or a low-limit card. Keep in mind that a prepaid credit card like a Visa Secured card lets you set spending limits and track where your kids are spending money, both through monthly statements and through Internet accounts that show daily transactions. What’s more, you can transfer money from your own checking account to the card for a minimal transaction fee, and the card can be used like any other credit card to make purchases.
The cause may be of many, just like, the excessive intake of alcohol and other stuff like smoking, drug consumption etc will surely affect the erectile dysfunction. generic overnight viagra In October 2007, the FDA announced that the labeling for all PDE5 inhibitors, which includes sildenafil online without prescription , needs a additional prominent warning of the possible risk of sudden hearing loss. It also ensures viagra online in kanada growth of pubic hair and deep voice in males. This fruit wonder is known to mend, treat, and prevent cialis 40 mg many types of physical conditions and diseases for which health advocates are being fans of Goji Berries more and more over time.
Or, as an alternative, your child can apply for a real credit card where you co-sign for an account with a $200 to $300 limit. Such an approach makes more sense than adding a child to one of your own accounts. We all know that teenagers are prone to lose things, and you don’t want to open yourself up to fraudulent charges on your own high-limit account by some thief.