7 of 21

Write now Article Tools

Young people shouldn't acquire credit cards until they learn the way money works, the way credit works, and the value of compounding.

So many are in debt, because of ignorance. Money competence is not something we are born with. So many parents just dish out cash to thier kids and neglect to teach them the skills they need to handle a credit card or any other form of debt.

Prior to a credit card, the young people need to:

Get a job - be reliable, learn work ethic and work hard
Open a savings - Learn to pay themselves 1st from the start
Open a checking - Learn to budget and pay for their expenses (car, insurance, entertainment, gas, etc)

Once those are in place and growing in the right direction, then they can try a debit card. This is the same as paying cash but with the security of a visa card.

People use the excuse that they need to build credit, this is bogus. They will build credit with student loans. Don't assist your kids to climbing on the debt band wagon. This is how people stay poor and middle class. Set the youth up for wealth.

Learn more about this author, Laundry Queen.
Click here to send this author comments or questions.

Add your voice

Know something about The number of credit cards young people should have?
We want to hear your view. Write now!