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I don't even think they should have debit cards, honestly. Until I had my own small-but-steady income (at 16, but still), my parents had to sign any withdrawal slip I used before I could take out money. Some adults don't understand how to spend and save money, much less kids the age in the video.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-134363-100x100.png\")
Yes, absolutely. Give the kids a secured credit cards where the limit is whatever deposit you put into it. Then when or if they make mistakes, they aren't able to dig themselves an enormous credit hole. At the same time, those kids who are responsible would be building some credit history for the future.
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@wagenejm: \"Yes, absolutely. Give the kids a secured credit cards where the limit is whatever deposit you put into it.\"
You either miss the point entirely or don't know what you're talking about.
Most likely the latter, because what you are describing is not a credit card, but is a debit card.
Debit Cards usually look pretty much identical to Credit Cards but work like checks, drawing from a checking account. Some even can be used as credit cards, and even include Visa logos.
But yes, DEBIT cards are a AWESOME choice for high-schoolers.
That is, as long as it's THEIR account with only the money they earn in it.
(Middle & Grammar school kids, IMO should be focusing on the responsibility it takes to work to EARN that income, rather than how to responsibly spend it.)
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-68654-100x100.png\")
@2 replies by: what he's describing is a secured credit card (which is why he called it a \"secured credit card\". read about them here: [www.bankrate.com]).
advantages of SCC to DC: reports to CRAs, which builds credit history.
disadvantages of SCC to DC: fees, interest comparable or higher than traditional credit cards.
@mac-phisto: I know this is a week old now and I disagreed with you initially, but you get mad props for that smackdown :D
@wagenejm: maybe they can't get into trouble with debt, but this can be awfully dangerous when it comes to instilling healthy spending practices.
what happens when you give the kid a card with (say) $200 on it & they spend it all in one trip to the mall? refund it right away? don't refund it for a month?
it's very difficult to teach good spending habits to kids simply b/c there's little consequence for actions. if they spend all of their \"back to school\" money on CDs & video games, are you going to make them go to school without the supplies they require? not likely.
credit cards can be a good tool for teaching responsibility, provided that it's part of a comprehensive program to instill good behavior. so, i'd say this is a good idea if you have a plan on how to implement its use properly.
@mac-phisto: If you're just handing the kid the card and letting them run wild with it, then you're missing the entire point about teaching them how to be responsible. There is still SOME parenting that has to be involved here. If they misuse it, you obviously as a parent have to step in and make it the learning experience you want them to have. Obviously if they spend all the balance in one place frivilously, the point would be to make the kid refund and pay off the card, not the parent. Otherwise all they learn is that they get limited free money from somewhere and act accordingly whenever they have it.
I'd also never let a kid be in charge of buying their own school supplies. That is a step they are obviously not ready for when they are LEARNING how to be responsible. I'd instead make it so that the card is intended to be used to buy things they want to enjoy, like movies and video games. Once they've used the card, they're going to have to pay down the card so there is balance available to buy the next thing they want. This teaches them to store up value until they can buy something they desire.
And obviously if they refuse to learn, they have a useless card and you're only out the initial limited money you put into it, rather than a random extreme amount that you would get with an unsecured card.
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-159004-100x100.png\")
@wagenejm:
This is a best of both worlds idea. My parents did this for my sister in HS and I think it worked out alright.
You can't really get into trouble, but at the same time you're getting some credit history and a little experience.
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-537475-100x100.png\")
If you're not even old enough to get a job, you shouldn't have access to any form of payment that doesn't come in the form of a controlled allowance. Period.
When I was a pre-teen, I had to ask my parents whether I could buy something because they were the ones giving me money.
If I asked for things that I knew probably would get rejected, it reduced my chances of getting something that they would have approved - if not for the fact that I already asked six times for things they didn't want me to have.
And if it was something relatively frivolous, but expensive, and I got it, that all but eliminated my chances of getting something very useful, but expensive because I essentially \"dried up the well\" with my frivolous purchase.
Kids need to learn these kinds of negotiation tactics, instead of just getting money to spend. I had to learn to ask nicely and balance need with want.
@pecan 3.14159265:
I still found the whole thing to be shut and case when the 2nd kid spoke up and said you shouldn't have a card if you don't have an income and bam, that kid is going to be a doctor,lawyer, banker, w/e richer than the rest of the kids there. Am I the only one who noticed that the girls were more eager to own a card than the guys? Lol, not trying to be sexist but ladies think back to when you were a teen and what you could've done if you had a card.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-16563-100x100.png\")
@pecan 3.14159265: (cough)
My 'rents were good with providing alternatives with trade-offs. Scheming evil adults.
Either this-or-that (should we get a telescope or a fish tank?) or gift-with-strings (want that CD? Enough to review it? Acceptably?! (expect many, many revisions)).
I couldn't get a camera until I was old enough to be able to take darkroom classes since they argued that I was missing half the picture (ha!) by dropping off the rolls at the drug store.
They'd also embargo future goodies if they deemed they hadn't seen enough mileage off of the previous family splurge, and do so pointedly.
They'd also come up with interesting chores for treats: watch To Kill a Mockingbird or Casablanca then be able to hold a decent conversation about it, which usually involved learning more on the side as we ate pizza or ice cream or what have you (which was the original treat requested).
Everything with strings, but interesting ones.
But Jeezus were they tight with hard, cold cash. I was a very \"poor\" kid in that sense compared to my peers.
@Trai_Dep: I hear you on the growing up poor thing. I tell my boyfriend stories about my dad's frugality when I was growing up and he looks at me with absolute horror. In order to play nintendo, for example, we (my brothers and I) had to learn a page of vocabulary - spelling, definition and using them in sentences. However many we got correct dictated the amount of time we got to play. The game was something we didn't have at our fingertips, we had to earn our play unlike our friends.
Most of our shopping was done at thrift stores - or the few times we'd find a discarded piece of clothing on the street, take it home and wash it and see who wanted it. Delayed gratification was a concept I learned when I was still in the single digits and it carries through with me today. However, my boyfriend refuses to allow me to collect 'street' clothes anymore. Can't say that I blame him :P
@whim17: we didn't have nintendo, my mom doesn't like game systems so she never bought them. the only one of us who owns any game systems is my sister, who has three. i'd rather run around and play outside anyway (even at 25).
@pecan 3.14159265: Mom had a neat trick to prevent my requests from getting out of hand.
When such demands were made, we'd sit over a table and I'd have to play a Spin-the-Pistol using a revolver with one bullet in it.
As she put it, \"Five chambers filled with love, one chamber filled with accountability. Let the Fates choose.\"
(Mom and Child Protective Services didn't always see eye-to-eye)
@pecan 3.14159265: we didn't have allowances. i mean, really, paying kids to do chores they should be doing anyway. what we had was birthday and holiday money that went into the passbook savings account, that mom held onto until we turned 18. so if i wanted to withdraw money i had to go to the bank with her
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-603961-100x100.png\")
@sponica (woke up on wrong side of bed): I earned money as a child by getting good grades in school. My initial allowance was $20 per week, but when I started middle school, the 6th grade, my dad and I made an agreement for me to earn $20 per every A I earned on my report card. While this method may not work for all children and may be seen as a form of bribery, it worked well in my favor and helped me control my spending and avoid having to beg my parents for everything. If I didn't earn the money by doing well in school, I didn't buy something. This continued through high school and I finished near the top of my class. My dad taught me about the importance of savings when I was very young and that money was to be earned through hard work. When you're young and school is your main job, compensation and allowance should be based on performance. By the time I went off to college, I was already used to managing money and not wasting it on every frivolous thing I could get my hands on.
@Cat_In_A_Hat: i can see the strategy working in some situations but backfiring in others. it might create that demon who only works hard for the money, and doesn't gain any intrinsic reward from doing the hardwork. what's the point of doing the hard work if one doesn't feel pride in it?
we lost privileges for performing poorly, and received nothing for performing to expectations (nothing lower than a B)
@sponica (woke up on wrong side of bed): True. Done the wrong way, your child could turn into a selfish monster. As a child I really enjoyed school anyway and wanted to do well and luckily I was also taught the meaning of giving back and volunteering at a young age. As a youth most of my money earned this way went into savings anyway because my father wasn't a big fan of wasting money on junk or something you'd throw away or forget about in a week. When I got my first real job at age 15 after volunteering at the same organization, I was already used to working for free and would have done the job for free but was now allowed to be paid and gain work experience. Having a real paycheck that I could save and manage taught me financial responsibility at a young age which I've carried with me to adulthood.
@sponica (woke up on wrong side of bed): I didn't have an allowance, either. What I did have was a firm set of parents who told me that I could spend a lot of time wanting something, but I could only buy it if I asked them for permission (and the money, since they were paying for it). Sometimes if it was particularly massive, like a new computer, they would teach me delayed gratification by getting it for my birthday, or for Christmas.
@pecan 3.14159265: they didn't really buy stuff for us. they'd give us the 10 bucks (or whatever) from the bank account when we went on vacation (which was rare), if we wanted to blow it on day one, so be it.
once i started working i was allowed 40 dollars from my paycheck to last until the next paycheck. again, if i wanted to blow it all on pay day, that was my choice.
@pecan 3.14159265: I don't understand how that kind of 'negotiotion tactic' could transfer into real-world skills. No matter how sweetly I try to convince my boss that I need a raise so I can go to Hawaii, it's never going to work. I need to manage my current income to save for it.
I actually like the idea, because when they're young you have more control and guidance than you do once they reach the teen years. Give them a card with a small limit, and if they start missing payments, take away the things they bought with it.
The kid who said using cash made purchases more painful is absolutely right, but in the real world, most of us use plastic (whether credit or debit). It only makes sense (to me) to teach kids from a young age to deal with money the way they will as adults.
It's more of a self-negotiation tactic. You know that your boss will only consider one request for a raise. Do you go all out and request 20% with little chance of getting it, or do you ask for 5% with a big chance?
Do I blow all my vacation requests on a trip to Vegas, or do I bank some of them to visit family in times of need?
Do I blow my tax refund on a new TV, or do I save it for a car repair I know is coming up?
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NO
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@gStein: +1
There, you're back to even. Not a chance my kids are getting a credit card. I completely agree with another poster who said that many adults shouldn't even have credit cards. If we're responding based on this video, it's clear that kids don't think they should be carrying around plastic.
no way, after being stupid and putting myself in debt in college, NO. It starts with \"oh, it's just for gas..\" then it's dinners, a few shirts, then it's a computer... it just gets worse. I'm still working my way out of that crap.
From highschool to about my soph year in college I had a CC with a $300 limit. Did me no harm and I barely used it.
Anyone under HS age... you may be asking for trouble
My dad got me a credit card when I was 16 to start building my credit. It had a limit of $500 and I want to say he was on the card as a guarantor until I turned 18. I'm not sure I had a job at the time, but I did have savings and was expected to pay off the balance.
I was what the credit card companies call a \"dead beat\" since the beginning, when I learned that CapitalOne wasn't going to make any money off of me if I paid my paltry balance off all at once.
Lots of people say buying things with cash make the transaction more painful/you're more aware of what you're buying, but the opposite is true for me. If I have a wad of cash in my wallet, I'll spend it on things. Then two days later when I go to look for it, I have a mini-panic attack and think I lost those twenties I had in my wallet, when really I just bought things and forgot about them.
Seeing items I bought on a credit card statement and having to pay them off all at once gave me a better understanding of my budget and what exactly I was spending my money on.
I think plastic for young adults could be a great thing, given they have appropriate guidance from their parents and not just a carte blanche to buy whatever they want because they have a credit card. Realizing that a credit card does not equal a free pass to buy a bunch of shit is a valuable lesson to learn, and I think the earlier, the better.
@zombies.like.lattés.too: They still make money when you pay in full, interchange fees on every purchase.
@zombies.like.lattés.too: You know, I feel exactly the same about the pain of cash vs. the pain of credit. Although I pay a lot of things with my bank card, but it's the same sort of thing. When I log in and see all the stuff I've bought, it hurts.
Also, I save all my receipts, so when I organize them it's a bit painful.
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-901728-100x100.png\")
@zombies.like.lattés.too: I learned that CapitalOne wasn't going to make any money off of me if I paid my paltry balance off all at once.
Credit cards earn a nice profit off of virtually any purchase by charging stores fees for using the card. Basically, you use your credit card to take a loan, and the stores pay interest for you. For instance, if you make a $50 purchase, maybe $1-2 goes to the credit card company.
Credit card companies like people who pay off their balance each month since they are low risk borrowers but still bring them a hefty return annually. For example, $1 of $50 = 2%, but if you pay your balance off each month, that $50 could be loaned 6-12 times per year for 12-24% annual return.
Don't think you are screwing credit card companies by paying off your balance each month. In reality, everyone pays higher prices to help the stores offset the fees to the credit card companies. Some gas stations try to fight credit card use (and fees) by offering a discount on gas for those people who pay in cash.
@statgrad: okay, granted the credit card companies are still making money by virtue of the fact that businesses who accept credit cards pay a fee per transaction, but they don't turn a profit in the form of interest from my purchases.
@zombies.like.lattés.too: but they don't turn a profit in the form of interest from my purchases.
not in the form of interest paid by you but they still turn a substantial profit from your purchases, which both consumers and businesses do pay for (since it is economically comparable to a tax).
i'm not saying don't use your credit card. my points were (1) credit card companies do make a profit off of your activity, and (2) no one should be under the impression that the costs of using a credit card are zero since we pay for that use in higher prices. (people who pay cash get screwed: they lose the protection of a credit card but still pay higher prices for everyone else's use.)
I had my first credit card with my parents at 16. It was my training wheels card. I never overspent and used it mainly to buy things for the family, new clothes when I needed them, or stuff when I would be expected to take my sister shopping.
I, too, am a deadbeat - even 6 years later haha.
I also don't underestand the cash thing. I spend it much more readily that I spend on a credit card. Perhaps it is a generational thing?
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-562864-100x100.png\")
Most adults shouldn't have credit cards.
In fact, I think the world would be a better place without credit cards period.
@GuinevereRucker: If that were true, I'd feel the need to hire an armed guard to escort me next time I had to go to the Apple store. Carrying $3,000 in cash doesn't exactly make me feel safe, you know?
@zombies.like.lattés.too: Remember those things from the bank called checks? You can still use them! They just take longer to process.
Debit cards... now there's a handy idea, kinda like checks but without the huge credit card companies involved.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-1175017-100x100.png\")
@zombies.like.lattés.too: Just carry a firearm, fixed blade knife, learn some self defense like Krav Maga, keep a dog with you at all times, and be sure to have pepper spray as a backup.
You should be all set!
@GuinevereRucker: Incidentally, kudos to that smart kid at the end of the clip. You can tell who has the financially responsible parents who are imparting their knowledge to their children!
Wow, the kid in the grey shirt is smarter than half of the population.
@bumpducks: \"It's not a ... not a good idea to have a credit card unless you have ... income.\"
Genius.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-428567-100x100.png\")
I don't think this is a question that has a one-size-fits-all answer. (Besides, one size never does fit all anyway, does it?)
For some kids, access to a credit card can provide real-world lessons about finance, and for a few, it may even work better than reading about them or hearing about them in a class. Some people learn better from hands-on experience, and if that can be provided in a controlled environment, it could teach them lessons that would be much more painful to learn as adults.
For others, it's just another way to spend money ... there may even be kids who use the card wisely only because their parents are there in case things get out of hand. Remove the safety net and then they use it unwisely.
I don't have kids, so this is purely academic for me. Maybe it comes down to what you think your child can handle. (Maybe it's not that different than, say, alcohol ... drinking can obviously put you in a much more dangerous situation, but I think the idea behind exposing your teenagers to alcohol is similar. Some parents do it to help the teenagers learn in a controlled environment, others don't believe teenagers should ever drink.)
I've considered setting up credit cards for my kids (<10) in order to give them a jump start on credit history. I would be the one using them at first for 1-2 payments per month, but then hand it off to them at a more appropriate age when they have proven that they have the financial fortitude to handle it.
Anyone have an experience with that, or thoughts for/against it?
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-808630-100x100.png\")
@_NARC_: I've read in some parenting magazines about using fake, in-home credit cards with preteens to teach the fundamentals. I'm actually considering doing something like that in a year or two with my child who is about to turn 4 and can already do math, figuring that if I seed her head with financial responsibility early, maybe it'll get embedded in the personality.
I firmly hold the traditional view that before children have their own credit card, they should already have their first drinking binge and escort*-provided Around-the-World tucked safely under their belt.
Bonus points for a restrained shooting spree in the living room, but only while they're reenacting the classic William S Burroughs William Tell moment (but with a happier outcome, obviously: stains are messy!)
* Classy escorts, like that gal that Tom Cruise shared a movie with in Risky Business. Otherwise, it'd be highly inappropriate.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-10039-100x100.png\")
I'm glad to see most of these kids have a good head on their shoulders.
That one girl's going to have to be especially careful in the future.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-376869-100x100.png\")
My best friend got a credit card when we were in jr. high. It was given to her to teach responsible spending, blah blah blah.
It was difficult to use. Most places would raise their eyebrow at an 11 year old with an Amex, but she had a passport to verify it was her card. Still, her purchases usually involved a manager.
Shortly after she made her first purchase, the number was stolen. Though this was an actual theft, think about how careless kids are. I probably lost 15 house keys during my childhood/adolescence. A credit card tucked in a Hannah Montana wallet is quite easy to misplace.
She has more debt than anyone I know. Her house was foreclosed on, her car was repoed. Just because you think you can teach your kid good spending habits doesn't mean you're right.
Most adults shouldn't have credit cards. Let's not give them to kids.
Depends on the kid. I got a card on my parents' account when I was a teen and used it only for things that required a credit card, always with consultation and approval first. Then I used it in university for things like books that my parents were going to pay for anyway.
It's not like I could screw around with it because they'd know.
Let's just say that their experience with my younger brother was much, much different. People can get addicted to those music/movie buying clubs when they think someone else will pay the bill...
@kaceetheconsumer: my nana gave my sisters and I a credit card when we went to college. she INCREASED my limit because I was using it too much on school stuff (books) and she wanted me to have some fun. i got to keep mine until it expired some time in grad school. my middle sister was an idiot, and used the credit card at the liquor store. while my nana wanted us to have fun....she wasn't going to fund that sort of fun, and cancelled the card.
my youngest sister cut up the card after undergrad because she thought it was only for undergrad.
@kaceetheconsumer: Well, by the time you get to college age, you better be able to do things responsibly. The article talks about pre-teens, as in those who are 11-14. At that age, I'm not sure that kids should have credit cards.
@pecan 3.14159265: My brother is in his 30s and still can't hold onto a dollar, but I was managing my money intensely when I got my first paper route at age 12.
Some kids can handle it, some can't. Just like I'm sure there are some very politically-aware, smart kids out there who deserve to vote more than some clueless adults.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-87429-100x100.png\")
Nope, no credit cards and no cell phones.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-25844-100x100.png\")
@Saboth: Heh, my 12 year old son asked for a mobile phone last year. I asked him who he's going to call. He said me. Yeah right, try again. So he said he's going to call his friends who have mobile phones. Even better - from where will you call them? School doesn't allow them. Home, school or soccer - and I coach his soccer team. He couldn't come up with a situation where he'd need it, so he dropped it.
@humphrmi: the only times i wished i had a cell phone as a tween or teen was when the high school pay phone was busted and I needed to be picked up (and they wouldn't let you use the one in the front office). what use was my calling card if the payphone was busted?
if in the future i breed, the offspring will have a cell phone, one that can only call two numbers MINE or the emergency contact number. and no texting.
Er, does this question really require any more answer than a simple \"No. They shouldn't\"?
What that one girl wanted to say - the one who said she'd pay her credit card bills with \"Uh, holidays?\" - is that she would simply give the bill to her parents to pay.
Sadly that's how many teens already buy things, using the parents credit cards.
Starting at age 12, i got an allowance of my age, and I was responsible for everything - lunch money, movies/restaurant trips with friends, clothes if i was at the mall with friends (my mom would take me sometimes if she thought i needed something). I learned to save pretty well and shop around, but I had some babysitting income too, so it wasn't just the allowance.
I did get my first job at 14 and have worked ever since, because I actually enjoy the experience of working hard and buying something nice that I really want.
In the same vein, when I didn't get into the elite (and super expensive) university i desperately wanted to attend, I \"shopped around\" and ended up at my state school for a fraction of the cost, and loved it. I was willing to pay a lot for this elite school that i loved, but if i couldn't go there, i felt at least i'd get the bargain (cause i paid for it, with loans.)
Until the age of 15 or so, I didn't completely understand credit cards. I thought you paid with them, then at the end of the month, you got a bill for everything you bought and you had to ... pay the whole bill. I literally didn't know there was such a thing as not paying the bill in whole. That's what my parents did every month, so I thought that that's how it worked.
Then I got a card when I was 18, and another at 20. Except for a few months when I was getting on my feet, I've paid off both the cards in full every month.
If I had a kid, if possible I would absolutely give him a credit card with a very small balance (perhaps $100 or $200) if something like that is possible.
Hopefully I would have raised him to understand money, but if not, then he gets in debt and finds out just how much it sucks to be in debt and struggle to pay it off, AND have no spending money as that is happening.
I'd let him learn the lesson with training wheels on, so he doesn't repeat the process as an adult.
@chocobo: there's no guarantee of anything. my sisters and I had the same parents, same economic status throughout childhood (actually I feel like we went down after dad left the Army)...and all 3 of us have vastly different relationships with money.
I always thought that contracts entered into with minors were unenforcable. I'd have figured that this would extend to CC's too. What happens to the minor if he or she decided not to pay? I don't know that a minor has legal competence to declare bankruptcy.
@mrgenius: I think the fact that the parent has to cosign for the card makes it ok. They'll be held liable if anything happens.
I think it should be up to the parents to decide whether or not a kid should have a credit card.
I'm 18, almost 19, and I've had a credit card since I was 12.
I was only allowed to use it on family outings and I was expected to pay for whatever I charged with my allowance. When I got my first job at 15, I was allowed to carry the card with me wherever I went, but I had to ask permission before I charged anything.
It was an American Express on my father's account, and I still carry that card today.
I wasn't a \"spoiled rich kid\" or anything...my parents are both middle-class medical professionals.
Slowly, my parents added me on as authorized users to more and more of their cards. By the time I was 15, I had a JCPenney charge, a Wal-Mart charge, a Target charge, the AmEx, a Wells Fargo Visa, and a Citi MasterCard.
I never really used anything but the AmEx, but my parents gave me the cards \"just in case.\"
I'm glad they did...it built my credit and taught me good spending habits.
Now I have a FICO of 782, no debt to speak of, an AmEx of my own, and a Chase Visa Signature for those places that don't take AmEx. I have no other cards in my wallet--not even a debit card. I still have the accounts on my parents' names, but I gave the cards back to them and asked them not to cancel them because it would probably damage my FICO.
I treat my cards like cash and never carry a balance of any kind. I deposit my paychecks into my checking account, transfer half of each check to savings, and then pay my cards at the end of the month.
I was shopping around for a car and the finance manager at the local Nissan dealership told me he'd never seen someone my age with such great credit history.
Now if I could get lower car insurance rates...
This thread is a rite-of-passage for pretty much every blog / social networking site out there. I've seen it on Slashdot YEARS ago, then Digg a couple years back, now here on The Consumerist.
It's always pretty humorous because it nearly always shows exactly which users are not yet legal adults.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-133551-100x100.png\")
If an older teenager has some income, parents should consider co-signing on a credit card with a low limit ($500 max) before the kid goes off to college and monitor how he/she uses it.
If the kid is initially reckless, the damage is limited and there's some hope a lesson will be learned and the behavior corrected before he/she enters college and/or the real world. If Junior can't or won't learn to manage their finances, it's cheaper for the parent to cut their losses eating a $500 Visa bill instead of getting stuck later by co-signing on a student loan or car.
My first MasterCard? My 18th birthday, co-signed by my dad. Annual Fee: $15. Credit line: $500. What my dad said he'd do to me if I f**ked up his credit rating by paying late: Priceless (and mostly unrepeatable).
Welcome to the king of all bad ideas.
Unless it's a gift card or prepaid credit card, you're asking for headaches.
I had a credit card very young. I was told if I put anything on there but emergencies then I would have it taken away. My dad was almost daring me to put something on there so he could take it back. There was no way I was putting anything on that card, just to prove them wrong.
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-159178-100x100.png\")
The circular logic moment in that video is priceless.
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-1114821-100x100.png\")
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-255368-100x100.png\")
I wish I was that heads-up about finances as a kid. I remember starting a savings account at the urging of my parents. I didn't have a job, so deposits were sporadic and limited. That didn't stop me from treating the ATM like the most reliable slot machine in history (until the balance was shot). With a credit card, I could have done some real damage.
@hoi-polloi: Seriously... at that age, children's body parts are growning at different rates, arms and legs and so forth; I'm surprised I was even able to coordinate my walking around without falling down or bumping into stuff all the time when I was 14.
Now, imagine that lanky, giant-headed 14-year-old walking around with a means to buy as much candy and McDonalds as they could eat.
(shiver)