by Tammy Lim

Created on: July 21, 2007

No, teens should not have credit cards. Teens should not be given the "freedom" to spend as and when they wish or want to before they are mature enough to comprehend the difference between needs and wants. Teens need to build their sense of budget and balance during this period of their life. It is very important that they learn to spend within budget at this young age as this will become part of their spending pattern as they grow into adulthood years later. It is very difficult to change a bad habit that is picked up at an early age.

Parents need to be "unkind" in order to be kind to their teenager by controlling the allowance they are given and NOT giving them a credit card BEFORE they start to work. Teenagers should be taught to spend within their means. This is a very important skill that they need to learn from young. Without a credit card, they will not be exposed to temptation and do not have the chance to overspend. This will protect them from the habit of overspending and from having a bad name if they go into credit card debts.

Having a credit card during teen years may give the youth the illusion of abundance which is not permanently there. Having a credit card may promote materialism if the teenager is not mature enough to handle it. Once the teenager becomes accustomed to luxurious spending, it will be very tough for him or her to kick the habit later in life. This not only affects his or her life, it drags down all his/her family members and those who care about the teenager. Their future may be that they have to pay credit card interests in thousands of dollars monthly.
Even if the parents are well off and have good monthly income, it does not mean they need to give their teenager a credit card. I think it is not a good thing to overindulge our teenager as it would be very difficult for them to "tone down" their expectations when they grow into adults and if they earn less than their parents in the future. They become very unhappy and disgruntled when they realize that the luxuries that they thought they had were not true, that it is only an illusion.

I had seen how the abuse of credit card and of overindulgence of a teenager by some well off families had resulted in high debt incurred. Nothing is impossible, so be cautious and teach your teenager well to the best of your knowledge.

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