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By permitting teenagers to have credit cards it starts the learning cycle very young, which is viewed as both positive and negative. Credit cards allow these young people to experience the real world while still in a comfort zone. It will teach them the value of debt, payments, and the interest cycle. Teenagers should have credit cards just like low income and poor credit score families are able to obtain housing, after they have had training.

It should begin at home. Parents should teach children using some type of money or chore system the value of currency: to pay for items in a store, to save, and to spend wisely. In my family, the values of hard work were instilled at a young age and then came money and its responsibilities. Without this training and ethics background I would have squandered every penny and by the time I would have had my first credit card I would have maxed out.

Next, the training must continue at school in classes such as finances and economics. Once they have seen and heard of the benefits and downfalls they should be given their "wings" and let them try it out.

Make sure they have a credit card with a rewards system in place. This will be known to almost any child just as much as treats are to a dog or cat and will create an instant understanding. In addition to the incentives of paying on time and using the credit card they can learn how to flex their money. 30 days to pay a bill is free money, a smart child can be directed to have an interest bearing checking account and therefore save even more.

The safety net is this, low credit limit and time. A teenager's first credit card will have a limit between $300 - $500 which is barely enough to purchase a few video games let alone an Xbox. If problems arise and they stop paying their bill or make late payments they have enough time to repair their credit score before their first major purchase such as a home or brand new car.

The teenager should be responsible and prepared but it should be taught now, at this young age. Or else crises like the sub prime mortgage will continue to occur ever 20-30 years without fail. The mind is the easiest to teach when at a young age and few responsibilities, it all changes when families, rent and jobs are in the mix.

To address the opponents on this issue of children spending freely and behind their parents back it will happen any way. Children will find a way to get what they want, a credit card is the only secure way to make them learn and avoid stealing, drugs and other means of obtaining the funds they want. You as parents are usually co-signed on the credit card and have full control. You can call the credit card and freeze it at any time; you can put definite limits on the spending and many other options.

Last of all, the largest benefit is their credit score, starting so young will strengthen their credit score very well by the time they make their first major purchase. Time is very crucial on a credit score, late payments are not as bad, and defaults are very high. So you can either let them learn with less money and possible problems now or let them utterly fail tomorrow on thousands of dollars. Especially now when bankruptcy is no longer an option to remove your debt.

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