Do we really want teenagers to have credit cards in a time when everything tempts us to buy it whether we can afford it or not?
Spending is out of control, and more people than ever have access to credit, but the question is whether or not it is needed and/or deserved. There are pros and cons to everyone having a credit card, just like there are pros and cons to everyone having a cell phone.
If your college student is going out of town, it seems like an emergency credit card would be a good idea. This is why it's important to talk about when it's okay to use the card and when it's better to pass on something if it's not in the budget. There is a big difference between what your student wants and what he or she needs. If your student can tell the difference, you are less likely to overspend.
One of the good things about it is that you can talk to the teen about the monthly statements and see where the money is going. You might have made a budget that includes money for gas, car maintenance, school costs, etc. If these are the only purchases on the statement, it's likely that the teen knows how to spend money wisely. If not, you might want to think again about giving your student a credit card. Like everything else, some people get it right away, some learn over time, and some never do. It depends on the situation.
When looking for a Student Credit Card, it's also a good idea to see if there are any reward programmes. Some offer points for every dollar spent, cash back on popular purchases (up to 5 percent in some cases), free or discounted tickets to certain entertainment venues, no annual fees, and no liability for fraud. And I could go on. Here, doing homework can really pay off, and it's a great way to help your child start building a good credit score.
In the end, you and your partner will need to sit down and talk about how to use credit cards properly in all situations. Some kids can handle it, but others can't, and you'll have to treat each one differently.
