Plastic money may be easier to handle. But the ready cash can also lead to splurging. Giving a credit card to your child means a lot of responsibility and also a credit limit which he/she has the choice to spend. But the good thing is it will teach them how to manage money.
- Here is why you can hand him that credit card
Teaching kids about managing money is one of the most essential lessons parents need to give. Usually they are happy with giving their children a weekly or monthly pocket money. But as inflation rises a simple trip to the movie hall can set your child back by a couple of thousands and carrying a wad of cash is not safe. Here’s when a credit card comes in handy.
- Teaching aid: Take credit card as a money teaching lesson. Your kid should understand that a credit card is not an unlimited spending option. He needs to understand where to spend on and when to save.
- Safer: A credit card is a lot safe than carrying a wad of cash. Cash is important to understand the concept of saving but a credit card is easier to handle.
- Set an age: Giving a credit card to a ten-year-old might not be a good idea. Give the card on occasions when your child might be going out in a group. Do not give the credit card on a permanent basis.
- A limit is a must: To avoid unexplained spending get the credit card on a minimum limit. Also keep checks whenever the statement comes.
Credit card/free digital photos
- Get mobile updates: Nowadays all banks send immediate SMSes on use of credit cards. This way you can instantly keep track of your kid’s spending.
- A safety net: A credit card acts as a safety net in case your child is out with friends and they run out of cash. But your child must know to keep the card with him and never hand out information to strangers.
Try giving him/her the credit card on trial period – if it works you can give him one permanently. Don’t worry too much – technological advances makes dealing with your kids easier and your child cannot ask for extra pocket money too.