Allowing your teenager to be beholders of a credit card is a big responsibility. It is never too early to give your teenagers credit card. But some parents may be scared to do this. It comes with some cons but is overweighed by the pros. This is a reward that you must give them when they come to understand the concept of money management. However, consider preparing them well when the time finally comes by starting with opening them a saving account or opening for them a check in the account instead. These will help you see how they will handle their savings and expenses then decide whether they are ready enough to start having a credit card. These will make them ready for when the time comes for them to have a debit card. Moreover, getting them a credit card can also be another learning tool. Discussed are some benefits of giving your teenagers a credit card.
Let us begin by saying it gives your teenagers a sense of responsibility. Owning one will make your teenagers feel grown. With these, your teenagers are aware that they have to account for every step they take about money. Before buying something they have to think first whether it is worth it or not. At the end of the month you can seat them down and ask them how they spent every coin.
In addition to that a credit card will reduce money lose. With cash at hand, your teenagers will always misplace it. In addition to that, your teenagers are school going if they carry cash around on is likely to still from them. With a credit card, the money will not be lost as the card can be replaced if it is lost, unlike cash.
Moreover, it teaches your teenagers on good banking habits while they are still young. , Before handling a credit card they should have had experience with a checking account of their own. In addition to that consider letting them understand how to write checks, sign the checks, balance the checkbooks and keep a checkbook register. Allow the teenagers to learn how to use an ATM as well let the know-how to deposit and withdraw cash. In the end, they will understand banking.
The fourth benefit is that it will help your teenagers establish a credit score. When you are done with you tertiary education the decision to move out will automatically come. Having built a good credit card from your teenage days you will be allowed to borrow a loan from a bank. To end, above are the advantages of giving your teenagers credit cards.