This Will Help Them Learn Faster That A Credit Card Is Not A Passport To Free Shopping

Category: Finance.

Even though they are young and have not started yet to face the real world, teens are given credit cards so that they can adjust to the system and so that they know what to do in order to keep their finances balanced and not to get into trouble by overusing them. There have been studies performed on teens spending money through the credit cards they have been given and the results are really concerning for the adults.

Even if the intention is to prevent credit card debts to be made, teens seem to make debts just like every card holder. In the United States, the statistics have, for example shown that the balances on the credit cards of most teenagers are huge. Usually, the credit cards offered to them are extensions of their parents credit cards. That is a phenomenon that tends to increase, even though this must not happen, because their needs for credit are not that large. Still, that does not stop them from overspending. The studies made must really be a warning sign for the adults.

It can be explained by the fact that the teenagers do not yet fully understand the concept of having a credit card in their hands, and they do not realize the danger and the situation, which can emerge in case the credit card is overused. Teens must comprehend how the system of credit card works, and this can, its flow be a great opportunity to get positive results in the statistics. In this process, it is very important for the teenagers to firstly learn and understand the fundaments of managing their financial funds in general. We can obtain successful results by offering the teens a strict education. There will not be seen any improvements in the teen credit card statistics unless teenagers truly understand the notion and the pitfalls of the improper use of the cards. This will help them learn faster that a credit card is not a passport to free shopping. Teens need to know that every acquisition they make using a credit card will return at the end of the month under the form of a bill which, unless paid on time, will increase very fast getting them into a world of trouble and worries.

Eventually, they will understand the real value of money. They must have an idea about how to handle money, no matter if it is cash or plastic. An idea of educating the young to handle their finance the right way is to start asking them to do it with their pocket money, before you offer them a credit card. The theory does not do the trick all the time, so what you have to do is let them experience on their own how they feel when they are the masters of their own finances. You can bring your contribution to the improvement of the teen credit card debt statistics by beginning with your own teenage children. Opening a bank account for teens can also be a solution, and by the time they receive their personal debit card, they will have known exactly what do with it, and will not mess it up. Set a low credit limit on their card and show them how to use it.

Thus, the shocking figures in the teen credit card debt statistics will considerably decrease. These slow but certain approaches will make your teenage kid understand the real value and the importance of discipline and responsibility in managing his/ her finances at an early age.