Kids and Credit cards

Q & A

Kids & Credit Cards

Great show Gail! I watch it with my 13 year old daughter. I was brought up by parents who didn't believe kids and money mixed. Family finances were never discussed in front of me. I did not learn about money until I was much older and in serious debt. I want to make sure my kids learn about money; learn to budget and live within their means. I would love to get some more info on children and money. My four kids (13,11,9,7) have their own saving accounts, however, I have control over these accounts. At what point do I let them control their own money? Is it a good idea to give your teen a credit card (a very small amount of course) so that they learn early on in life on how it all works? Thank you in advance and I'll be watching you on TV!

Name withheld

Thank you so much for asking these questions.

At what point do I let them control their own money?

From the very beginning. If kids don't have control over their money, it's not their money, it's yours and you're just playing a game. Your job as a parent is to set some expectations, and then take the opportunities to teach the lessons that come from the natural consequences.

Is it a good idea to give your teen a credit card (a very small amount of course) so that they learn early on in life on how it all works?

Absolutely. I'd start young kids (age 12+) out with a credit card on the Bank of Mom. You charge the item for them, you issue them a "statement", they have to pay you on time or you charge interest and/or repossess their stuff. Later - I believe they have to be 19 -- you help them get a credit card with a really low limit so they can build some real experience.