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Why it is worth giving a child a credit card

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Perhaps each parent has goosebumps when they think about giving a child a credit card. Even if a teenager, once again begging for a credit card, convinces him that he will earn some money and return the money, the parent realizes that his child may never learn to value money.

On the other hand, a credit card can serve as a teaching aid; in this case, the child will not get the wrong idea about money during his journey into adulthood. If your teenager turns to you for a credit card, you should not immediately say “no, you will never get it”. Here are three reasons that can justify the fact that you still give credit card to your child.

Credit card is more convenient than cash

Credit card is more convenient than cash

If you give your child a bundle of money, he will probably put it in his back pocket or in his wallet. In this case, it will be quite difficult to follow up on what the money was spent. Although the credit card can be lost, it can be restored in the bank, but there is hardly any cash. Sending a teenager somewhere far from home, you will be more relaxed if he goes with a credit card, and not cash. For example, when traveling by car with friends, a moment will come when gasoline is about to end. Emergency spending with a credit card can save the day, especially if teenagers do not have enough money on hand. Otherwise, children can stay on the sidelines until you come to their aid.

Children should be accountable for responsible expenses.

Most banks are likely to refuse a loan to a teenager under the age of 21 unless at least one surety is indicated. Such measures, of course, protect young people from ill-considered actions, but in this case they cannot gain precious experience in using money. Responsible use of a credit card is not taught in school and most often it is parents who instill good manners to their children. By giving your son or daughter a credit card for use, you prevent their irresponsible treatment of their expenses and give them a chance to curb good and bad habits before they leave their home and enter adulthood. After all, most of us learned to manage the budget and money only after we made a lot of mistakes. From an early age it is necessary to accustom children to responsible expenses and, perhaps, you will limit them from large debts in adulthood.

Build a credit history at a young age

Build a credit history at a young age

By issuing a credit card to your child, you can not only teach him to take money and debt responsibly, but you can also make your first contribution to building a good credit history. The earlier a teenager has a credit history, the earlier he will be able to apply for a loan in the future. Of course, there is nothing bad to wait for entry into adulthood, when a person gets a first job so that you can get your first loan … But you can prepare for this moment and have a good score in the report, which will allow you to take a loan for a large amount on the best terms. When a child begins his own life, he may need a car or rent an apartment in order not to live with his parents. Therefore, right now you can help your teenager – take a loan with a guarantee or add him as an authorized user to one of your credit cards. Thereby, you will begin his credit history and be able to help make it good. At the same time, keep in mind that if you issue a debit card for the child, it will not be reflected in his credit report.

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