As the number of teenagers is growing year over year, their spending habits through credit cards are also increasing proportionately. Credit card issuers are now targeting the teenage group to further expand their consumer products business. But, most of the countries will have a minimum age to apply for a credit card of their own, and the minimum age is usually at the age of 18. Those below the age of 18 are not legally allowed to go into a contact with the bank or any credit card issuer without a co-signature. This simply means that there are increasing numbers of parents who are co-signing or getting those credit cards under their children’s name which links to the parent’s account.
The question that is in everyone’s mind today is that “are the minors ready to hold a credit card?” Then again, everyone must be aware that great responsibility comes with having a credit card. It is always up to the individual to control the usage of his or her credit card. But, when minors or teenagers are involve, then it is very much up to their parents to be responsible in educating their children on good credit management and managing the spending on their credit cards.
If in any case that the parents of the minor or the minor themselves finds it difficult to control the spending of their credit cards, then it is always advisable to look for alternatives such as debit card or prepaid cards as these methods will allow the minor to spend within their means and the given limit. A debit card looks and feels just like a credit card but the major difference is that there is no credit involved. The debit card is a payment card that links to the user’s bank account and as transactions / purchases are made, funds are immediately withdrawn from the user’s bank account. This means that the minor can only use the debit card as long as there is money in his/her bank account that is linked to the debit card. Prepaid cards are on the other hand needs to load money into it before they can be used for making any transactions / purchases. Usually the money is loaded by the parents of the minor and thus they can control on how much the child spends using the pre-paid card.
One golden rule for the minor who holds a credit card is that they should always remember to be the master of their credit card instead of a slave to it. If it is used wisely, one can enjoy the benefits hence it is important to be aware of one’s own limit of spending. And, giving a credit card to a minor is solely the decision of the parents or the guardian, and they must seriously take into considerations in educating the minor in wise money management or they can always opt to go for the alternatives to credit cards.