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Most credit cards designed for students were made for college students – but can a high school student get a credit card? The short answer is yes. Long answer would involve a lot of discussion!
As teenagers, many move out and get their first jobs, or are otherwise earning income from alimony or babysitting. This is the perfect time for parents to help them learn the basics of money management; which many families give up; High school students graduating to go to college or the “real world” with very little real knowledge of finance.
Just a few short years ago, giving a credit card to a teenager was not only impossible, but you would be considered a little crazy to do so! Times have changed though, and there are various credit cards on the market for teens that parents can use to help them learn the basics of financial responsibility.
Credit cards for teens include features such as parental controls and digital ‘perks’. Giving your teen a credit card can be a sweat, but it makes for a great educational financial experience for your child—before it’s too late for you to help them become a financially responsible person:
Teach them about good credit. With so many adults currently struggling to reestablish their credit or raise their income so it’s easier to keep up with their monthly payments, it’s never too early to teach teens how to manage money. does not happen. Teaching them at a young age can prevent them from spending once. Nellie Mae claims that the average freshman college student has over $1,500 in credit card debt; And once a student realizes how easy it is to “get what they want now,” it becomes a habit to use them to buy the things they want while in college. If a teen enters the adult world with solid money management skills, she’s less likely to go into debt.
your options. If you aren’t concerned about establishing your teen’s credit history at this point, and just want a way to teach the basics of money management, you can look for prepaid debit cards with the Visa or MasterCard logos. Some of these cards may have an annual fee or transaction fee—which gives you another opportunity to show how using a credit card isn’t the same as shopping with cash. You can also sign up your teen for a checking account with a debit card; Or keep them as an authorized user of an account you already have – or open a new credit card account with a lower limit and keep your teen as the cardholder.
Gives teens access to emergency funds. When your children become teenagers, it is likely that they are starting to move away from you and spend more time alone or with their friends. Sometimes they may need cash – if a car breaks down and they need to be pulled off a highway, or for a long distance phone call, for example. Having a credit card in their pocket will make it possible for them to handle any emergencies that require money and can give you a little more peace of mind.
If you decide you’re ready to teach your teen the basics of money management and credit, make sure you spend some time investigating the different options available to you before making a choice. Whichever option you choose, you’ll want to make sure you spend enough time with your teen and don’t expect them to figure out what to do with it on their own! Try using a service like Citibank’s Credit-Aid program: http://www.citi.com/us/cards/cm/student/index.htm
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