A teen's inexperience with credit cards may lead to disaster if they are not properly taught how to use them before they rack up a huge balance. It's almost as if credit card companies know to market to young and inexperienced teens when you see how many credit card applications start coming in your teen's mail just around their seventeenth birthday. Here are a few tips to convey to your teen that will help them realize that credit cards are not free money:
- All purchases made with a credit card should be well thought out. You need to know how you will pay back the money first, before you buy.
- Making money mistakes now will hurt your credit later when you are looking to buy a car or a house. Read your contracts carefully before signing up for credit.
- Make your payments on time. Credit cards are not free money, you have to pay them back.
- If you are unsure about making a purchase with your credit card, wait a full 24-hour period before buying it. This will keep you from making impulse purchases.
- Use a credit card calculator to run some numbers and show your teen how much more a purchase can cost when using a credit card to buy it.
More: Decide If You Really Need a Home Phone Number | All Money Saving Tips for Families
Suggested Reading:
Follow the About.com Parenting & Family's Thrifty Thursday:Comments
No comments yet. Leave a Comment