When, and how, to give your teen a credit card

Is your teenager ready for a credit card? If so, how can you keep the spending from spiraling out of control? Take this advice from the National Foundation for Credit Counseling:

Consider giving your child a credit card linked to yours. “Not only will your teen inherit your good credit rating, but it will also allow you to see how much they are spending,” the foundation said. A good plan is to tell teens at first to use the card only for emergencies. If they show they can handle that limitation, allow spending that they can fully pay off with the first bill.

Review spending each month. “When the bill arrives, sit down and review your statement with them so that you can make sure they understand how to read them,” the foundation said. Point out how interest can accrue if the bill is not paid off every month. Explain the importance of building and maintaining good credit.

Use an online payoff calculator to show your child how long it will take to pay off a credit card debt. “Since credit cards have very high interest rates, teach your teen that paying the minimum payment will keep the debt growing — even if no other purchases are made,” the foundation said.

Teach your child about the dangers of credit card fraud and identity theft. Be sure to tell teenagers never to lend their credit cards to someone else, leave receipts lying out in the open or give their card number over the phone to questionable callers.

Resist the urge to bail out teenagers who spend too much. Go over their options with them — getting a job, working more hours, cutting back on spending. Consider setting up an appointment with a credit counselor. You can find counselors through the NFCC by calling 800-388-2227.

More in Herald Business Journal

Aerospace workers adjust to changing industry

The number of Boeing workers dropped almost 10 percent since last year.

Tom Hoban
Are millennials warming up to life in suburbia?

They dominate the apartment market and their wants need to be accounted for, says columnist Tom Hoban.

Camano artist mixes flask, paintings for successful cocktail

Art flasks prove popular as bachelorette gifts, birthday presents and wedding favors.

Fluke’s T6 Electrical Testers receives Innovation Awards honor

Fluke’s T6 Electrical Testers have received top honors in the Tools and… Continue reading

Everett volunteer named ‘community champion’ by Molina Healthcare

Everett’s Jorge Galindo was one of seven people across the state to… Continue reading

Cascade Valley Health to hold Festival of Trees in Arlington

Cascade Valley Health Foundation will be holding their fifth annual Festival of… Continue reading

7-Eleven program helped add 500 trees, shrubs to Everett park

Last month, 7-Eleven helped plant more than 500 trees and shrubs at… Continue reading

Pentagon inspector general praises secret $80 billion bomber

US Government Accountability Office in 2016 rejected a protest filed by Boeing-Lockheed Martin.

Everett’s Sentry Credit celebrates a quarter century in business

Sentry Credit Inc. in Everett is celebrating its 25th year in business.… Continue reading

Most Read