Comments on: How Young Is Too Young for a Credit Card?

By: lee @ luxury baby gifts

lee @ luxury baby gifts — Sat, 24 Jul 2010 16:02:35 +0000

I would like to see children of all ages get a sound financial understanding. Personal finances should be taught in schools then we wouldn’t be in this mess of people over financing things to keep up with the jones’s.

By: » A whole bunch of links to great articles… Undertrader: Laying to rest the myths of investing…

Tue, 08 Jul 2008 14:12:01 +0000

[...] one that is an interesting read about credit cards over at masteryourcard.com, but I think the real answer should be never. If you never get your kids credit cards, they [...]

By: J Dawg

J Dawg — Mon, 23 Jun 2008 18:21:47 +0000

Are you kidding me? How young to teach them about credit cards! Should not the question be when do you start a child’s financial education? When it comes to credit cards you should through them in when you talk about cigeretts and drking and driving. Do not do it ! EVER.

J Dawg

http://www.undertrader.com

By: MITBeta @ Don't Feed The Alligators

MITBeta @ Don't Feed The Alligators — Tue, 17 Jun 2008 02:27:38 +0000

@Naomi:

I think the lesson for pre-teens that it costs money to borrow money will help to dissuade children from wanting to borrow money. Then it’s important to get them used to the abstractness of a credit card (in the same way that chips at the casino are not “real” money…).

@Ulrike: Right on.

@Romyr: Are you a college student? Traditionally it is very hard to get a card at your age — unless you’re in college and have no job. College students are far more likely to eventually pay back their debts than their non-student counterparts and credit card companies love getting them hooked early. Check out the movie Maxed Out for more on this…

By: Romyr

Romyr — Sun, 15 Jun 2008 05:54:21 +0000

Well I’m still 19 years old and I have recently received a credit card under my mother’s name. I think what you forget to mention is how difficult it is to get a credit card for young people with no credit history. Creditors are reluctant to hand out credit cards to young people (at least with the many credit cards I have tried to apply for), and I think that being under my mother’s name is a great help in being able to build credit.

Also, I agree that debit cards are a great way to teach young people about managing money. However, young adults and others shouldn’t be using them recklessly, especially online. Too many people are having their identities stolen through fraudulent websites, and it would be terrible to have a young adult’s credit history ruined, which could ruin a person’s future financially.

By: Ulrike

Ulrike — Sat, 14 Jun 2008 00:34:04 +0000

I very much respect anybody’s choice not to use a credit card. I know several people who get in trouble every time! However, as I mentioned at another post, I earned over $900.00 in cash rebates from my credit cards in the last 12 months and I’m saving that money for a special purchase. I use my credit card like a debit card: never spend more than I have, but keeping my spendable money in a savings account (currently 3.3% at WAMU) and paying the cards off promptly. And the interest I get from the savings goes on top of the earned rebates.
I am hoping to teach that to my grandchildren.

By: Bryan

Bryan — Fri, 13 Jun 2008 14:54:47 +0000

My wife and I plan to teach our kids (only have a 4 month old right now) about credit cards early. We’ll teach them that credit cards are dangerous and the reasons we don’t have them. We’ll teach them that we save for the things we want. We’ll teach them a better way.

I’m sure I’ll get the argument that it’s the end user and the way they use the cards; it’s just a tool to be used. But in our household, we don’t use them.

By: Naomi (Urban Mummy)

Naomi (Urban Mummy) — Fri, 13 Jun 2008 14:04:14 +0000

What about teaching children to save up for what they want, instead of borrowing to purchase? I think that would instill a much better money sense, and I also think it will help build a stronger character.

They could be taught to use credit cards as charge cards – simply for convenience, instead of as a source of money. If they learn from an early age not to spend money they don’t have in the bank (any type, piggy or otherwise!), wouldn’t that help them understand a more effective way to use credit cards as they get older?

I think that if we taught more about delayed gratification and the value of saving, children would appreciate what they purchased more, and be ready to make better financial decisions when they are adults.