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The current economic woes of the United States were in part caused by the easy availability of credit. This should be a clue that credit cards are a danger not only to teens but to adults, as well. We live in a "gotta have it now" society, which is caused by the easy availability of credit. That attitude encourages debt. We lose our perspective on the difference between wants and needs.

The best way to teach teens financial responsibility is to teach them the value of a dollar and the value of saving for the things they want and need. Not being able to immediately buy what they think they need will teach them the difference between wants and needs. Teens need to be able to earn their money, then save that money to buy what they need. This will give them experience with budgeting and an appreciation of the meaning of using money as a tool. Holding your hard-earned money in your hand and turning it over to a cashier to pay for a boom-box is much different from sliding a piece of plastic and signing your name to the little piece of paper.

Teens do not have the discipline and wisdom to use a credit card wisely. Being able to buy what we can't afford at the time is addictive. Buy now, pay later makes it too easy to get into the debt snowball and that is a cruel thing to burden a teen with. Teach them the value of a hard-earned dollar and the value of budgeting money for what they want or need first. Once they have learned that discipline, a small line of credit might be appropriate. Perhaps through Mom or Dad, or another relative, to whom the teen would also pay interest on the money borrowed. This way the teen would learn that when they borrow money, they have to pay back more than they borrowed.

It is possible that if a person learns the real value of money as a teen, he or she will develop financially responsible habits that will last the rest of his or her life. Though teens are do not have the wisdom to be successful with a credit card, they are intelligent enough to understand interest. If they can be shown how much of their money they lose to interest and penalties when using a credit card, it is possible they would reject the use of them.

Credit card companies are too predatory and unforgiving for teens to be forced to deal with. Interest rates and penalties are unbelievable. Simple mistakes can lead to overwhelming consequences, and one of those consequences stays on their credit report for eight years.

Learn more about this author, Billie Thomas.
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