Here are some tips from Citibank for parents who give credit cards to the child:
Teach children to use credit cards wisely
You should teach and give examples of the use of credit cards well to children. If you do not have good habits, most likely your children will follow the habit. Always remind you that credit cards are the means of non-cash payments, rather than facilities for the debt.
Convey that the credit card is a Privilege
The first time you have a credit card, tell them that this card is a privilege that you give him and therefore they should be fully responsible for their use. Tell also that you will continue to monitor transactions performed by the children.
Review and discuss the bills every month
We accept credit card monthly bill, sit down together and examine every expenditure made by your child. If you feel there are things that are not needed or not should be, straight talk and finish it with your son or daughter. Through a monthly bill, you can also teach children about the importance of interest and pay off bills on time.
Have a clear payment plan
One important thing is to be discussed with your child how he would pay the charge. If they have not worked, then you can put pieces of money monthly. Teach that they could only do the expenditure of the amount of money they have. If not, then they will not have the ability to properly manage credit card. If you buy a child something with a big cost, you may be charged interest when he returned the money to you.
Specify the limit that can be used child
Parents should make a deal with the child about the limits the use of credit cards. Given these limits, both parties must be consistent in complying with agreements already made. Make sure you only give one credit card to child.
Tags: Credit Card