by Michele Blacksberg

Created on: May 02, 2009   Last Updated: May 03, 2009

Using a credit card responsibly requires maturity, restraint and discipline. Teens are given the responsibility to drive cars safely. They must show restraint to keep their cell phone usage within phone plan limits. Disciplined teens working part time jobs must perform tasks given accurately and possess the maturity to run a cash register handling other people's money and credit card purchases. Teens earning decent grades gain privileges they desire like going out with friends.

Don't these characteristics sound strangely similar to the roles adults have and what we as parents expect teens to learn well in order to lead balanced stable lives? The question that begs to be asked is, if we don't give teens credit cards while they are still living at home when should they learn about budgeting, interest charges for lapsed payments and staying under the credit limit required to own a credit card and not go into debt? Do we want our kids to learn about the risks of charge card temptation without our help so they can make credit mistakes that may haunt them for years?

The age a teen should be allowed to have a credit card needs to be decided individually depending on each family's situation and the maturity level of the teen. The single parent who relies on a younger teen to go to the grocery store and pick up items for dinner or the disabled or ill parent who is forced to drop her teen at the mall to go shopping for socks alone might consider giving their teen a credit card at an earlier age.

Of course you could give your own credit card to your teenager when needed and have them sign your name. However, I know my own son would not be comfortable doing this. He has already told me that it feels "dishonest" signing my name which is certainly not the lesson I want him to learn.

Once an age is determined for the teen to have a credit card, decisions regarding what acceptable purchases the charge card can be used for need to be discussed.

1. Emergencies- flat tire repair, towing or gas

2. Which items need approval first?

3. Develop a monthly charge budget for misc. items like movies, food and clothes that your teen must learn to stay under.

Overall, parents should teach the same rules about using credit cards that teens need to apply to other areas of their life.

1. Use the credit card responsibly within the rules given regarding which purchases are approved.

2. Each month, review the purchases, note any returns were credited and pay the entire bill must before the deadline date.

3.

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