• Blog
  • About
  • Contact
  • Disclosure

TeensGotCents

Why wait to live a centsible life?

  • Common Cents
  • Job Cents
  • Shopping Cents
  • College Cents
  • Mom Cents
  • Blog Cents

Should Teenagers Have a Credit Card?

by Eva 14 Comments

Should teenagers have a credit card? It depends on who you ask! Take a look with me at some of the pros and cons of giving a teen a credit card.

This is a question I have been thinking about for some time now. I have also done a lot of reading to find out what other people think. Wow. It’s a huge issue out there and quite controversial. I have been amazed to read the things that people think about teens. How we are irresponsible and out of control, even how our brains are incapable of making a distinction between spending real money and ‘plastic’ money.

Really? It makes me wonder how much of the trillion dollars in consumer debt now owed in this country is due to teenage spending on credit cards. Not to be rude but I’m pretty sure most of that is adult spending. Perhaps teenagers aren’t the only ones who can be irresponsible with money…ahem. 🙂

So, should teenagers have a credit card? Let’s take a look at the pros and cons and I will tell you what I think at the end. I also want to point out I’m pretty sure that a teenager can’t have a credit card in just their name before they are 18. They could really only get a card as an ‘authorized user’ on a parents card, so that’s really what I’m talking about here.

Pros

Helps a young adult learn how to manage debt:

Even though I am only 18 I have already learned that just sliding a card is so much easier than pulling cash out of my wallet. And yes, I have slid my debit card at a store and been declined (SO EMBARRASING) because I had forgotten about something I had gotten and didn’t have enough money to cover today’s purchase.

Should teenagers have a credit card? It depends on who you ask! Take a look with me at some of the pros and cons of giving a teen a credit card.

A credit card is different because the money doesn’t come out of the account right then. Getting the bill at the end of the month can be a huge problem if you don’t keep track of your spending. Having a credit card as a young teen can help you learn to keep good track of your purchases and make sure you have enough money to pay everything off at the end of every month.

Helps establish a credit history:

Some people say that having a good credit score doesn’t matter but I don’t think that’s true. If you are right out of high school or college you are probably going to need to rent an apartment, purchase a car, or qualify for a home loan. Having a good credit score will matter when you try to do these things.  I have also read that more and more employers look at your credit score before hiring so it definitely matters!

Cons

Some teens will get into trouble with a credit card:

There will be some teens who will not handle the card responsibly and will get themselves or their parents into debt. However there are a few easy ways to make sure this doesn’t happen. Parents should educate their children from a very young age about how to handle their money. This will really help a teen make good choices with a credit card. Additionally the teen could have a credit card with a very low spending limit of just a couple hundred dollars. This will make it impossible to make any huge mistakes.

Could create a bad credit score:

If a teen went into serious debt it could affect their parents credit score as well as their own. A bad credit score could affect a person for years. One way that parents could help avoid this problem is to go over the credit card bill each month with their teen and make sure that the spending is appropriate and under control.

There was a time that I would have said that teens should never have a credit card, but in the last year or so my perspective has changed a little bit. The big issue is education. If parents and schools would step up and teach kids and teens how to handle their money responsibly, how credit cards work, and how to avoid credit card debt many teens wouldn’t have a problem in the first place.

should teenagers have a credit card

The envelope system is a great way to start learning how to budget your money.

Here are some things I think teens should be able to do before being given a credit card:

1 – Show how they are able to budget their own money using a cash system. I use the envelope system and it works really well!

2 – Manage their own checking account and write their own checks and use their debit card responsibly.

3 – Be willing to sit down with parents every month and go over their budget carefully to make sure they are on track.

When I turned 18 earlier this year my dad helped me get my first credit card. I was already an authorized user on several of my moms accounts. I am allowed to use the card from my dad for all of my school expenses. It hasn’t been difficult to manage because I am committed to respect my dad and use the card only for those purchases because he is being kind enough to pay the bill every month.

Teens can use credit cards wisely especially if their parents have helped them understand how to manage money wisely from a very young age. It does take a commitment from both the teen and the parent but it will make such a difference for a young person who knows how to handle their money. And it’s a difference that will last for their entire life.

What do you think? Should teenagers be given a credit card? I would love to hear what you think!

Share the Wealth!

You May Also Like These

How are teens investing their money to affect their communities? See how organizations like the Lutheran Church Extension Fund offer investing opportunities specifically for teens!Changing the World One Investment At A TimeCreating a capsule wardrobe for teens is a great way to save money and stay fashionable with each new season! Take a look and get some great ideas!Capsule Wardrobe For TeensPopmoney

Join thousands of other teens on the path to a secure financial future!

Get my eBook Seven Days to Centsible Savings when you sign up for my FREE email newsletter!

< Previous Post Shopping at Ross Tips For Teens
Next Post > Facing Failure…Again

Comments

  1. edye stacey

    March 12, 2017 at 5:53 pm

    thank you, this really helped me!

    1
    Reply to edye stacey" aria-label=' Reply to edye stacey'> Reply
    • Eva

      March 13, 2017 at 4:56 pm

      I’m glad you came by. Thanks Edye!

      1.1
      Reply to Eva" aria-label=' Reply to Eva'> Reply
      • Money in the air

        April 6, 2017 at 11:39 am

        Love this! 🙂

        1.1.1
        Reply to Money in the air" aria-label=' Reply to Money in the air'> Reply
        • Eva

          April 11, 2017 at 10:41 pm

          Thank you! 🙂

          1.1.1.1
          Reply to Eva" aria-label=' Reply to Eva'> Reply
  2. Poop

    April 6, 2017 at 11:41 am

    Poo

    2
    Reply to Poop" aria-label=' Reply to Poop'> Reply
    • Eva

      April 11, 2017 at 10:45 pm

      I almost didn’t publish this comment but I decided to go ahead and put it out there. It’s officially the first unlovely comment I’ve gotten after almost four years of blogging and it made me laugh.

      Hope your day gets better Mr. Poo! 🙂

      2.1
      Reply to Eva" aria-label=' Reply to Eva'> Reply
  3. Max

    December 3, 2017 at 8:36 pm

    I’m reading this as I’m preparing for a speech about why teens should own credit cards

    3
    Reply to Max" aria-label=' Reply to Max'> Reply
    • Eva

      December 12, 2017 at 3:11 pm

      I hope it was helpful to you. There are different opinions about credit cards for teens, as you know. Hope the speech went well!

      3.1
      Reply to Eva" aria-label=' Reply to Eva'> Reply
  4. Blah, blah, blah!

    February 5, 2018 at 5:28 pm

    Should teens have their own credit cards? NO! “There will be some teens who will not handle the card responsibly and will get themselves or their parents into debt.” They will end up spending to much on the things that they don’t really need to have, but want really badly! “If a teen went into serious debt it could affect their parents credit score as well as their own. A bad credit score could affect a person for years.” If it is to much debt, and you don’t make a whole lot of money at your job, or if you don’t have a job, then you will be in debt for a while. But if you do have a good paying job, and know how to manage your money, then you won’t. “The big issue is education!” Nobody is teaching the kids about how to spend their money. Teens watch their parents spend their money. If the parents aren’t good at keeping up with payments, or bills, and buy things that they don’t need, then that will rub off onto the teen! DON’T GIVE YOU TEENS CREDIT CARDS!

    4
    Reply to Blah, blah, blah!" aria-label=' Reply to Blah, blah, blah!'> Reply
    • Eva

      March 9, 2018 at 12:53 pm

      My mom taught me how to use a credit card wisely, and teens can learn these things. One of the best ways to learn is to try something. If teens are never given the opportunity to manage their money or a credit card wisely then they will not know what to do as adults. I disagree. Teens should be given a card and taught how to use it well. 🙂

      4.1
      Reply to Eva" aria-label=' Reply to Eva'> Reply
  5. John Doe

    February 8, 2018 at 10:06 am

    I hate this website we all know teens are dumb!!!

    5
    Reply to John Doe" aria-label=' Reply to John Doe'> Reply
    • Eva

      March 1, 2018 at 12:58 pm

      This is my second official hateful comment after 5 YEARS of blogging! I’m so excited I can’t stand it. Thanks John for taking the time to remind us all of your truth and for spreading a little bitterness on the interwebz. Kudos on the amazing gmail address as well. Have a lovely day! 🙂

      5.1
      Reply to Eva" aria-label=' Reply to Eva'> Reply
  6. Kai

    March 8, 2018 at 8:15 pm

    I think this is a great website. I’m doing a research project on if I think teen should or shouldn’t have credit cards and this helped me a lot.
    Thanks!

    6
    Reply to Kai" aria-label=' Reply to Kai'> Reply
    • Eva

      March 9, 2018 at 1:01 pm

      I’m really glad it helped you Kai. Thank you for letting us know!

      6.1
      Reply to Eva" aria-label=' Reply to Eva'> Reply

Leave a Comment Cancel reply

Your email address will not be published - required fields are marked *

Hi guys, I’m Eva!

Welcome to TeensGotCents, my name is Eva Baker and I founded this site when I was sixteen. I'm a complete money nerd and I love helping teens learn how money works. Also, I watch too much Netflix. Although I still have a lot to learn about personal finance I hope you will use my successes and failures to help reach your own goals whether you want to go to college debt free, get a part time job, work on a fun DIY project that will save you money or just read about ways you can learn to manage your money well as a teen. So glad you're here! Read more about my story here.

Become a subscriber

Get my eBook Seven Days to Centsible Savings when you sign up for my FREE email newsletter!

Be sure to check out these popular posts

How To Keep Your Room Clean

An Interview with Sydney of Horse Crazy Girls

A College Story: The Coen Family

Are you looking for some teen bedroom makeover ideas? Look at the great (and affordable) things I found at IKEA!

Teen Bedroom MakeOver Ideas from IKEA

  • Facebook
  • Twitter
  • Google Plus
  • Pinterest
  • Instagram
  • Blog
  • About
  • Contact
  • Disclosure

Copyright © 2021 Teens Got Cents  |  All Rights Reserved  |  Site Design by Emily White Designs