08 Jun

5 Reasons Your Teen Should Have a Credit Card


Should Your Teen Have a Credit Card?

1. Teens need to walk before they run both physically and financially. Consider this unique card their “financial training wheels.” It will help instill good financial habits in your child while they are more receptive than say an 18 or 19 year-old. Rather than letting credit card companies tempt them with a free t-shirt on campus in exchange for a card with a $10,000 limit, RMLEFCU’s Kid’s Credit Card has a much lower limit in line with the reality of their earning capacity.

2. A credit card allows teens (and watchful parents) to track spending. Online tools make an easier job of tracking credit card use. If your child only uses cash and checks, it becomes next to impossible to see a spending pattern or recognize how much they are spending and on what.

3. A RMLEFCU’s Kid’s Credit Card will help your children build their credit history. By the time they reach adulthood, they will have already established a valuable credit record. No credit is almost as bad as poor credit since a lender has nothing to review when evaluating credit worthiness. Establishing credit earlier helps when your kids apply for a car loan or complete a rental application.

Additional benefits of a credit card include:

  • They’re convenient
  • They protect you against fraud and theft
  • They offer cash back and other rewards

4. Your input and guidance is welcomed and encouraged by us, and hopefully by your kids too. If they use a credit card for a few years before they leave for college, you are there to teach them how to use it responsibly. Learning to use a credit card before adulthood will decrease their chances of making costly mistakes later.

5. They’ve proven themselves responsible stewards of their own money. They are willing and able to do odd jobs or hold down a job whether it’s babysitting, waiting tables, mowing lawns, delivering papers, working as a caddy or a lifeguard. These are all great jobs for teens. Signs of responsibility include an ability to foresee that if they spend all of their paycheck, they can’t come to you. After all, like that poster says, “Your poor planning does not constitute an emergency for me.”

RMLEFCU understands you want to make sure your child is financially responsible. If they already have a checking account with us, the RMLEFCU Kid’s Credit Card is a great next step to take on their journey to adulthood. Talk to a RMLEFCU employee about applying today!

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