Is There Such a Thing As a Credit Card For Teens?

It is not often that you see a teen talking about budgeting, finance, saving, and investments. As a teen, the only reason to discuss money is usually to see if there's enough to buy the next big thing. Most parents can't trust a credit card to a teenager because so many don't understand what happens when you charge something to a credit card. In fact, they probably don’t even think about it. Swipe the card, get your purchase. It probably never crosses their mind that they will have to pay for it out of pocket later down the road, especially if their parents pay the monthly bill.

Credit card companies know that teenagers have little responsibility when it comes to credit cards. They charge and charge, and that's what credit card companies want them to do. They charge everything, pay the minimum, the interest builds, and then they are struggling to pay it when it catches up to them. If the credit card companies are lucky, the parents will pay for it all. Some parents will continue to bale their kids out of trouble, paying for their mistakes whenever they come. This is no help to them because they will never learn from their mistakes.

I remember when I was nearing high school graduation and through most of college. My mailbox was stuffed with credit card applications claiming I was pre-approved. They basically told me I had free money just waiting for me. Were these credit cards meant for teens? Were they made specifically affordable to teenagers so that they could afford what they needed in life to get by? Of course not. In fact, most of these cards have a much higher interest rate then normal because credit card companies see teens as a risk. They see innocent teenagers that don't know any better, and figure there's a chance they won't pay, but if they do, they can suck a lot of interest money from them.

Teenagers are often irresponsible with money and should never been given a credit card unless they have proven financial responsibility. There are some teens out there that budget, save, and even invest their money, but there are very few. Most of these teens probably wouldn't get a credit card anyway because they understand the consequences. If your teen is asking you for a credit card, your better off denying them, for their sake and yours. If they can't pay for it out of pocket as a teen, or even as an adult, they don't need it.