A credit card is a good way to teach your teen how to manage their money, learn about interest rates, and build their credit. But credit cards may not be as cut and dried to a teenager as they are for seasoned adults. Thus, parents may need to teach their children about how to build good financial habits. One of the most effective ways to do this is by adding them as an authorized user on your People’s credit card.
Explain How Credit Cards Work
If you choose to give your teen a credit card, explain exactly how it works, including interest rates and repayment. You may also want to show them your online banking account to show them how much you pay each month, giving them a clearer picture of the process.
Set Boundaries on Your Teen’s Spending
To make sure your teen uses the credit card responsibly, explain what they’re allowed to use it on and how much they’re allowed to charge each month.
Get a Secured Credit Card
Secured credit cards are backed by your own money and they’re a great option for those who are over the age of 18 and are looking to establish credit. People’s offers a Secured Visa® Credit Card with a 15.00% fixed annual percentage rate, no annual fees, and no balance transfer fees. Plus, getting approval is fast and easy!
Set Your Child Up for Financial Success
Teaching your teen a few important life skills such as how to manage their money will help them become a responsible and independent adult. It will also give them good habits to help build their credit once they turn 18. If you’re interested in opening a checking account or savings account on their behalf, or learning more about our credit cards, contact us today!
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Can You Set Parental Controls on a Credit Card? in Vancouver WA
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