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Beginning in February 2010, no one under age 21 can obtain a credit card unless they are able to prove they are financially independent, or they've a parent to co-sign and take responsibility for payment. A child may also be authorized to use their parent's charge card. Are your kids ready for credit cards? A parent should be sure from the answer to that question before handing within the plastic. By the time they strike their teen years, children should have discovered the value of a dollar, among other activities, but they also need to understand how credit works and the ramifications associated with misusing it. The earlier your children learn basic money management skills the greater. This knowledge will translate into accountable credit use. Start with a cash allowance for young kids. Their pay should be predicated on completing certain chores or responsibilities in your own home. Remember, you're teaching the value of the dollar, responsibility, and the idea of getting
money. If you teach your kid that money doesn't come free, they will learn to save and spending budget their money. Then you won't have to hand out extra cash every time they would like to go to the movies or the actual mall with friends. The lesson is that if they're responsible using their money they will have more of it to spend when they have to, and won't go spending on the whim. Cash makes it easy to understand, because they can literally see the cash come and go. An empty pocket book equals no money. Once your child starts accumulating some savings, whether it's from allowance or perhaps a part-time job, it's time to open a bank account. This can incorporate a debit/ATM card, which will likely be your son or daughter's first experience with plastic. The prior lessons with cash should still utilize. Teach them to keep track of the money (balance), and not treat that card as an endless supply of money. Remind them it's just like spending cash, as it comes directly from
their bank account, and there are fees for spending a lot more than you have in your account (overdraft). Once they grasp the idea of responsible money management, you can start referring to credit. Make sure they know what this means. Credit is borrowed money that should be paid back, and there are penalties otherwise done so within an agreed on period. Poor use of credit can damage their chances of obtaining credit later on. Some parents may not want their child to possess a credit card. Others may like these phones have one when they head away to college, or just for emergencies. There isn't any right or wrong way about this. However, whether your kids have charge cards or not, it's never a bad idea to teach them about personal finance and credit score. This will save them from future debt consolidation reduction issues and reduce the need with regard to debt management.
ABOUT ACCC: American Credit Counseling (ACCC) is a non-profit 501 (c) (3) organization focused on empowering consumers to regain control of the lives through education, counseling and financial debt management. ACCC provides individuals with practical options for solving financial problems and identifies that consumers' financial difficulties are often not caused by poor spending habits, but more often from extenuating circumstances beyond their manage. As one of the nation's top providers of financial education and credit score counseling services, ACCC works with consumers to help them with the best strategy to reduce their debt and restore financial stability. For more information or to access free financial education resources get on http: //www. consumercredit. com.
View this post on my blog: http://creditcard.valuegov.com/kids-ready-for-credit-cards/
money. If you teach your kid that money doesn't come free, they will learn to save and spending budget their money. Then you won't have to hand out extra cash every time they would like to go to the movies or the actual mall with friends. The lesson is that if they're responsible using their money they will have more of it to spend when they have to, and won't go spending on the whim. Cash makes it easy to understand, because they can literally see the cash come and go. An empty pocket book equals no money. Once your child starts accumulating some savings, whether it's from allowance or perhaps a part-time job, it's time to open a bank account. This can incorporate a debit/ATM card, which will likely be your son or daughter's first experience with plastic. The prior lessons with cash should still utilize. Teach them to keep track of the money (balance), and not treat that card as an endless supply of money. Remind them it's just like spending cash, as it comes directly from
their bank account, and there are fees for spending a lot more than you have in your account (overdraft). Once they grasp the idea of responsible money management, you can start referring to credit. Make sure they know what this means. Credit is borrowed money that should be paid back, and there are penalties otherwise done so within an agreed on period. Poor use of credit can damage their chances of obtaining credit later on. Some parents may not want their child to possess a credit card. Others may like these phones have one when they head away to college, or just for emergencies. There isn't any right or wrong way about this. However, whether your kids have charge cards or not, it's never a bad idea to teach them about personal finance and credit score. This will save them from future debt consolidation reduction issues and reduce the need with regard to debt management.
ABOUT ACCC: American Credit Counseling (ACCC) is a non-profit 501 (c) (3) organization focused on empowering consumers to regain control of the lives through education, counseling and financial debt management. ACCC provides individuals with practical options for solving financial problems and identifies that consumers' financial difficulties are often not caused by poor spending habits, but more often from extenuating circumstances beyond their manage. As one of the nation's top providers of financial education and credit score counseling services, ACCC works with consumers to help them with the best strategy to reduce their debt and restore financial stability. For more information or to access free financial education resources get on http: //www. consumercredit. com.
View this post on my blog: http://creditcard.valuegov.com/kids-ready-for-credit-cards/
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