Credit Cards and Teens 1

I’m Miriam Neff and I’m Valerie Neff Hogan with Wise Women Managing Money.

M One first world opportunity and problem is the credit card.  How do we educate our youth on it’s wise use?  One source suggests this idea. 

V That source suggests you 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.

M 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.