Best reasons for introducing kids to credit cards

The credit cards offer flexibility, valuable rewards and better security than cash. But they can also get unwary users into a lot of trouble. So when it comes time to give your kids access to a credit card, it is important that you teach them how to use it responsibly. This can help them understand both the benefits and the dangers.

Given is the list of the top points for handing over credit cards to children.

Giving training

The best way to prepare kids for things is to start to instill good habits when they are young. That includes credit cards. Helping children learn to budget, manage credit and keep their spending within their means can give them the financial literacy skills they need to become independent money managers.

Building credit

The children will eventually need to qualify for credit cards on their own. Adding them as authorized users on one of your credit card accounts can help them build a credit history while they are still in their teens, which can ease the way when it is time for them to apply for their own cards.

Emergency preperation

The card also came in handy again when there is any kind of emergency situation. The parents of children have their own credit cards but in adversities like the cards being lost or stolen, the cards of the children can be used for the transactions.

Checking spending

Credit card transactions are easier to track than cash, both for the parent and for the young shopper. Morrison recommends teaching kids to use the online tools offered by the credit card issuer, so they can see how their spending fits into different categories.

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