Teens and credit cards
August 24, 2018
I’m Miriam Neff-with STARTING OVER FINANCIALLY,-and I’m Valerie Neff Hogan, and we’re here to talk about money
M One first world opportunity and problem is the credit card. How do we educate our youth on its wise use? One source suggests this idea.
V Add your under–18-year-old as an authorized user on your account. Set a $100 credit limit on her card, If she handles that well, increase it by $100. “If you give kids too much credit to begin with, you’re setting them up to fail.
Handing over the card will get her attention. Give guidelines, certainly. Specific categories of expenses, not cash advances. It’s an educational beginning. . And you can remove them any time.
A better lesson: save up for things and don’t use credit