Should Teenagers Own Credit Cards?

Teenagers in Australia make up a small percentage of people who file for bankruptcy each year. What causes could be responsible for teenagers going bankrupt? One of the possible reasons that immediately comes to mind is credit card debt, which raises the question ” Should teenagers own credit cards ?” Are teenagers responsible and mature enough to own credit cards?

Teenagers should not be allowed to own credit cards because a teenager cannot be expected to have the maturity or sense of responsibility to handle a credit card. In case they do own one, then their access to it should be limited. This will help to prevent  the possibility of  the credit card being used irresponsibly and  ending up with a lot of debt. Teenagers should only be allowed to use credit cards under parental supervision.

Parents should co-sign credit cards as it will help them to keep a tab on the money being spent . Teenagers cannot be expected to have the maturity of an adult and can end up making bad purchases and can also easily get conned and end up buying bad products when they have ready money at their disposal. If they overspend and end up with a lot of debt then it will negatively affect their credit history . Thus parents should keep strict tabs on what the credit card is being used for.

What if teenagers do end up with a lot of debt.? Should parents help  with the debt? If parents help out with the debt they may end up giving the wrong message but if they do not it will probably affect the credit history of the teenagers and no parent would want to see their child start out with a disadvantage. So, yes, parents should help out with the debt but also forfeit their right to own a credit card till they prove they can handle financial responsibility.

What if teenagers do end up with a lot of debt.? Should parents help  with the debt? If parents help out with the debt they may end up giving the wrong message but if they do not it will probably affect the credit history of the teenagers and no parent would want to see their child start out with a disadvantage. So, yes, parents should help out with the debt but also forfeit their right to own a credit card till they prove they can handle financial responsibility.

It is better to give debit cards to teenagers rather than credit cards because though debit cards provide them with financial independence it is to a limited extent.It is easier for parents to keep tabs on their spending. It allows the teenager to learn to be financially responsible within limited boundaries.If they prove themselves to be responsible then they could perhaps graduate to owning a credit card.