by Todd Pheifer

Created on: March 12, 2009

Consumer credit card debt is one of the biggest issues in American finance today. People like their stuff, and credit cards can be the key to acquiring just about anything. Unfortunately, people make poor decisions on a daily basis and accumulate life-changing debt that can hamper them for years to come. Young people can be particularly susceptible to the temptations of credit cards. In the minds of some young people, credit cards can give them power, influence, and the ability to acquire toys, entertainment, and connections. Still, young people can be unaware of the ramifications of some of their decisions. Therefore, credits cards in the hands of young people should be carefully considered. Here are a few thoughts on the number of credit cards young people should have.

Young people

Of course, to discuss this thoroughly one has to define young people. The difference between a young high schooler and a college student can be immense in terms of responsibilities, oversight, and environment. Parents still have some influence over their high schooler, while a college student can often be out on their own. Therefore, techniques and tactics may be different depending on the age and maturity of the "young" person.

No card for you

A fair argument could be made for young people to have zero credit cards. After all, many of them lack the responsibility to effectively manage a credit card. For some young people buying things would be too much of a temptation. If they buy the wrong things, or rack up expensive entertainment events, they can risk hurting their credit at a very young age. If that happens, it can hamper their ability to get future loans for things like vehicles, education, and housing. This is why plenty of parents do not give their child a credit card.

Training opportunity

Young people do have to learn somehow. Therefore, some might argue that one credit card might be appropriate for a young person to manage. If the balance is carefully monitored by parents and the young person pays it off every month, it can be a valuable exercise in financial management. In addition, paying off a credit card can help build an early credit history for a young person so they are in a better position to borrow once they get older. Again, oversight is key in order to make sure that young people do not get into financial trouble. Young people in today's society run the risk of getting into enough trouble in other areas without ruining their credit.

Learn more about this author, Todd Pheifer.
Click here to send this author comments or questions.