There are times when parents forget the importance of teaching their teenagers how to manage their money. If they have bad spending habits of their own, the children are going to pick them up and are going to make the same mistakes. There are things that parents can do to teach teenagers to make the right choices, even if the they are not the best at money management. Some think credit cards for teens are a bad idea, but they can work great if you know how to do it and what you should use.
You obviously don’t want to get credit cards for teens that allow them to spend what they want with no limit, or to give them one that has a balance that can easily get out of control. This is not the way to teach them about money, and in fact, can teach them that money is easy and expendable. As a first step, a teen should have a job before you allow them to have any type of credit card. Secondly, they should know how to save money before they have a card too.
You don’t want to go through the traditional steps to get credit cards for teens. You don’t want the traditional type anyway. What you want to do is to find the prepaid types of credit cards. These only allow the teens to spend what they have put into the card. If they have their own job, and have put money aside, they can use that money on their cards. Or, they can put what they have left on their credit cards for teens after they have saved some of their check. The second option is usually the best for teaching good money habits.
After you have done all of this, your work with credit cards for teens is not over. If you can, get a print out of what they have spent each month and go over it with them. If they are running out of money very fast, they do not have the control that they should be learning. Talk with them about what they got and why they got it. Over a period of a few months, using credit cards for teens should show them how to spend wisely. They can then take these lessons on with them through life. The lessons don’t always stick, but in many cases, that is exactly what they will do.