Should you Encourage your Teenager to Get a Credit Card?

Credit is the basis of modern society. Having a good credit score enables us to purchase goods and services, such as a home, that cost more than what we have readily available.

A good way for teenagers and young adults to start building a credit history is to get a credit card and pay of the entire balance every month.

Avoid the temptation to pay off your child’s credit card statement. Teach your child to only use the credit card for expenses they can afford. At the end of the month, they must use their allowance or savings to pay off the balance.

This approach instills a sense of responsibility and empowers your child to take charge of their finances. It also allows your child to learn from their money mistakes at a young age when the stakes are low.

Financial Security Advisor by trade, Gianna Ricciardi is also mom to two rambunctious boys who have inspired her to launch Acknowledging the important role her parents played in making her a financially independent adult, she set out to coach and inspire other parents on how to help their kids prepare for a strong financial future.