Most credit cards share common features. However, when considering a card for your children, it's good to contemplate some special characteristics.
o Your child's card should have on-line tracking. Young people are extremely computer savvy and this will be the easiest way for you and your child to keep current on their credit card information like fees, current balance, and spending.
o If you and your child have chosen a card offering rewards or bonuses, keeping track of these will be an exceptional incentive to keeping them involved with the management of their credit card.
o You may want to link your child's card to your account. Order a second card, issued in your child's name, and you can control all aspects of its use. You can even place a spending limit on this card. This is an especially good approach if you are not totally convinced that your children are ready to handle an account of their own. It will offer your child the opportunity to prove to you that he or she can practice good credit card management.
o Prepaid credit cards are another option for your children. Some prepaid credit cards are especially geared towards teens. These credit cards feature a spending limit set by the amount of money you load on the card. Prepaid cards represent a good opportunity to test your child's abilities with credit before moving on to a linked card or a card of their own. Just be aware of the fees associated with these cards. There can often be loading fees, joining fees, and annual fees.
o If you believe that none of these cards represent a good opportunity for your circumstance, consider a superstore card, or a gas retailer card. These cards are commonly easier to get and have a lower fee structure.
Through these methods your child can learn that credit cards do not represent free money. They can learn that it is important to pay the bill when it comes due. Remember, establishing credit card history early can prove a vital benefit to a young person just a little further down the road.
It is important that you help your child learn good credit card management. The skill of good credit card management is important in today's society. Just like you would not allow your child to learn how to drive on their own, without supervision or training at the onset, you should not consider letting them lose into today's financial climate without adequate guidance on important financial obligations like good credit card management.