When do you get your child their first credit card?

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When do you get your child their first credit card?

A NEW STUDY SHOWS 18 PERCENT OF KIDS BETWEEN 8 AND 14 NOW HAVE CREDIT CARDS THAT'S QUADRUPLED IN THE PAST FOUR YEARS.

BUT JUST BECAUSE IT'S A GROWING TREND, DOES THAT MEAN YOUR CHILD SHOULD HAVE ONE, TOO? JENNA JAYNES JOINS US NOW WITH A BETTER IDEA OF WHEN IT'S TIME TO GET YOUR CHILD THEIR FIRST CREDIT CARD.

DAVE, JORDAN THERE'S DEFINITELY POSITIVES TO GETTING YOUR CHILD THEIR FIRST CREDIT CARD.

THEY CAN START BUILDING THAT CREDIT AND WILL BE BETTER OFF WHEN BUYING A CAR OR THEIR FIRST HOME.

PLUS, YOU'RE TEACHING THEM HEALTHY BUDGETING PRACTICES EARLY ON.

BUT– IT CAN ALSO BE CATASTROPHIC– ESPECIALLY IF YOU AREN'T MONITORING IT CLOSELY WHEN THEY FIRST GET IT.

SO WHEN DO YOU GET THEM ONE? LIKE MOST THINGS, THE ANSWER ISN'T CLEAR CUT.

10:40 UNTIL THEY'RE READY FOR IT THEY DON'T NEED ONE.

I'VE HAD COLLEGE FRESHMAN THAT ARE NOT READY FOR IT, I'VE HAD COLLEGE SENIORS THAT ARE NOT READY FOR IT SO THE BIG QUESTION IS ARE YOU READY TO HANDLE THE RESPONSIBILITY OF A CREDIT CARD, SO THERE'S NO MAGIC DATE OR MAGIC AGE SO BEFORE YOU DIVE IN– MAKE SURE THESE EXPECTATIONS ARE MET: FIRST, YOU'VE ALREADY EXPLAINED HOW THE CREDIT CARD WORKS– INCLUDING INTEREST RATES, WHY IT'S IMPORTANT TO KEEP DEBT DOWN, SECURITY AND CREDIT REPORTS AND SCORES.

THEN, GIVE THEM SPENDING GUIDELINES.

ONLY USE IT FOR THINGS THEY'RE ALREADY PURCHASING ANYWAY– LIKE GAS OR GROCERIES.

PARENTS NEED TO KEEP A CLOSE LOOK AT THEIR CHARGING ACTIVITY.

AND FINALLY, GIVE THEM REWARDS AND CONSEQUENCES FOR GOOD AND BAD CREDIT BEHAVIOR.

REPORTING LIVE, JJ, WOWT -6- NEWS.

DAVE, JORDAN IF THEY'RE UNDER 18 YOU CAN START BY JUST ADDING THEM TO YOUR CREDIT CARDS AND JUST HAVE THEM PAY YOU BACK EACH MONTH.

THEN AS TIME GOES ON AND THEY BECOME MORE COMFORTABLE THEY CAN GET THEIR OWN ACCOUNT.

By |October 25th, 2016|Categories: Credit & Loans|Tags: , , , , , , , , , |0 Comments

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