How to Get Started with a Credit Card

A credit card can be a useful tool for a teen, as long as he or she is closely monitored and taught how to use the card responsibly.

Here are some steps to consider before you move ahead:

• Make sure your son or daughter already has a checking account. It is important to know how to write checks and track money before using a credit card.
• Give your teen a credit card linked to your own credit card account so you can monitor activity and help your teen learn how to use credit with you, before he or she does it alone.
• Limit how much your kids can charge. Whether they’re authorized users on your card or they have their own, start with a low limit.
• When it’s time to issue your teen's very own credit card, make sure he or she knows exactly how the card works, what the interest rates and fees are, and when the bills are due.
• Be sure to emphasize the importance of a good credit history.

 

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The type of savings and investment strategies mentioned may not be suitable for everyone. Each investor needs to review a security transaction or strategy for his or her own particular situation. The examples mentioned are for informational purposes only and are not intended to represent results you should expect in the future. Data contained here is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.