Reader’s Question:

Hi, my name is Elrose from Peoria, Arizona. My younger sister is planning to give her teenager a credit card and I’m trying to convince her not to. I don’t think teenagers can handle credit card debt, when I myself am having a hard time with my own credit card problems. How can I convince her not to give her child a credit card?

Elrose

Peoria, AZ

I absolutely understand your concern for your sister’s child. However, times have changed and there are actually a lot of credit cards on the market for teenagers that parents can use to help them understand and learn the basics of financial responsibility. Credit card makes great educational experience for teenagers before it’s too late to help them become financially responsible individuals. It’s really never too early to teach teenagers how to manage money. In fact, teaching them at a younger age can prevent them from over spending once they’re on their own. If a teenager enters the adult world with firm money management skills, they would be less likely to get in over their heads in debt.

If that still doesn’t convince you, one option I could suggest it to tell your sister to give her child a prepaid debit card instead of a credit card. There are several credit card companies in Peoria, Arizona that offer debit cards. Some debit cards may have annual fees or transaction fees which is also an opportunity to show a teenager how using a credit card isn’t the same as buying with cash. Also, you might as well want to think of it this way. Having a credit card handy can help teenagers handle an emergency that requires access to money which can give you and your sister peace of mind.

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