For A Teenager BY Jouya Najafi A credit

For A Teenager? BY: Jouya Najafi

A credit card is a plastic card issued by a financial company that allows clients to borrow money from a bank and have it billed to their account. Credit cards are meant for short term spending since usually after a month, interest is charged to the account. What is a Credit Card?

Explanation of Credit Cards http: //www. investopedia. com/terms/c/creditcard. asp

• Large purchases can be made and be paid off in sections • Budgeting becomes easier since you get a credit card statement • It is more convenient Pros for a Teenager Having a Credit Card

• • It is a good way to practice responsibility One could build their credit score One could learn more about the value of money A way to prepare for the real world Pros for a Teenager Having a Credit Card

• Credit cards could cause overspending due to the convenience • Credit rating could be damaged due to irresponsible shopping Cons for a Teenager Having a Credit Card

• Easily go into debt if not tracking spending • Interest rates could turn small loans into large balances Cons for a Teenager Having a Credit Card

Based on if a teenager is read for a credit card is how much support they have. With some help from parents I believe teenagers would only then be ready to use a credit card. • Gradually use credit cards, have a small limit and slowly transition from cash to credit when becoming more comfortable with it • Start budgeting and saving money, to get use to it which can help pay debt • Knowledge, give teenagers some type of education on money management skills so they understand consequences of irresponsibility with credit cards Parental Support

• Ages 4 -6: Give simple information like what a credit card is • Ages 7 -12: Introduce how a credit card works and how payment is done • Ages 13 -17: Sign them to a joint-account for your credit card which allows you to monitor their use • Ages 18 and up: Give them their own credit card if they understand how it works and have proper financial management skills What Age Should I Give My Child a Credit Card?

I believe that it is appropriate to give your child a credit card if specific conditions are met. If the child has a proper understanding of budgeting, the value of money, is responsible with making purchases, is at least the age of 15, and has been co-signed to a credit card with a parent for at least a year. Should You Give Your Child a Credit Card?

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