One of the hottest debates doing the rounds right now is whether teenagers should actually have credit cards or not. As one school of thought goes on to say that having credit cards will help the teenagers to learn the tenets of money management; others say that credit cards will not do any good other than allowing them to splurge. The credit card, which is supposedly used by the teenagers, is more of a prepaid or secured credit card which will only allow them to spend the amount which is there on the card. The lines of credit are also much flexible for these credit cards. The predicament of a majority of college students with huge debts on credit card is a scary situation undoubtedly. Although, the debt consolidation programs are equally popular for settling the college debts, the credit card liabilities actually start from high school. If the purpose of teen credit cards is to teach them about managing their finances, the best thing to do is to let the teenager to make the payments. Not only will they learn to keep a track on their expenses, they will understand that a credit card is not meant for spending irresponsibly. They will also get the idea that spending more on the credit cards will mean making more payments and accruing interests.
Although, the primary reason for using credit cards is for the array of benefits that it provides. However, the teens should use the credit cards to build a good credit score. With a good credit score, they will be able to qualify for several loans in future and a host of other advantages. However, the credit cards can be considered as useful for the teens only when they will learn to use it responsibly. Moreover, the parents should also monitor the expenses and savings of their teenage children. Their views and suggestions will hopefully bring in positive changes and will make their children more aware about the choices that they make related to the credit card expenses. The basic idea is that the teens should only use credit cards for convenience and not reliance.
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