Possible advantages if a teenager is allowed to handle a debit and credit card with the necessary guidance:
- Financially savvy teenagers will grow into financially savvy adults.
- They learn how to work responsibly with a credit card before they get to the age where they can apply for their own credit card.
- Parents can set a limit and monitor money spend to teach their teenager how to budget.
- In a crisis your child will have access to funds.
- A lot of parents don’t know how to work responsibly with a credit card themselves and thus can’t teach their teenager the rules around credit card use.
- Parents sometimes don’t have the time or don’t see the need to guide their teenager’s credit card use. Your child will then spend money without learning anything.
- Extra funds might enable your child to engage in risk behaviour such as using drugs. A trusting relationship and clear rules are important.
- Your teenager can create serious debt that you will be responsible for.
Remember:
- Money can’t replace you as a parent.
- A lot of the financial principles that you want to teach your child, you can teach with a debit card.
You might want to read more about savings, education costs & study loans.
