Giving kids access to credit cards has great benefits in variety of ways. Kids need to learn about credit so, they will handle credit responsibly as adults, credit cards can help kids in emergency situations and, be able to have. Using credit helps kids get started on building a good credit history and, helps people at a young age in the future. Kids under 18 should be given access to credit cards because starting young will help you have good responsibility skills. Kids need to learn about credit so they will handle credit responsibly as adults. In fact, there are so many credit cards in American society that there are more to come . In 2011, A poll showing that most kids will likely grow up to use credit cards responsibly than people who start using credit as an adult. Credit cards can …show more content…
A good credit history can show that someone is responsible with money. And mature enough to succeed in having a happy or healthy lifestyle . Many companies use credit reports to learn things such as whether a person Is responsible or Is irresponsible when using a credit card. When a child is an authorized user on a parent's credit card, the parent's credit history will be horrible. According to Jeb Thompson, a parent whose son uses credit, this can help the child establish a good credit history while the parent can still have a good credit history. Some worry that kids won't know what to do in case of an emergency, but in case of emergency kids should be able understand credit and finances to help them. While many of today's teens may not know about finances, a child in danger should have a credit card handy incase they dont have cash. When Robert Jones's car broke down while he was driving some kids to a swim meet, his dad gave him a credit card for the towing. A kid's safety always comes first. Credit cards can limit the risk factor of people and/or their children being
At the end of the day, credit shows true financial independence and having excellent credit can get you what you want and save you a lot of money in the long run with the possibly of lower interest rates. Credit is a universal number that landlords, lenders, finance company and even an employer look at to determine your
It is up to you to know what is on your credit report and keep the data up to date. You might have paid your bills on time, but your credit report may show that your credit is less than perfect. You may have had a credit dispute with a merchant that was corrected, but not shown on your report. You may have a bankruptcy that was not properly recorded. You may also have experienced credit fraud.
Malcolm MJ Harris told students that the steps to becoming successfully at a young age he wished someone where to tell him was to avoid using co-signed cards, secured cards, and cards of any type. This is because, with cards you can’t really see how much you are spending and tend to spend more then usual. With co-signed cards, they aren’t particularly your money and because of this, you spend money that
Then, let’s assume you put $200 on your card. Your balance would start out at $200 in credit and X amount still in debt. Then, within 30 days, your minimum payment amount would be deducted and you would have only $110 in your account. A short-term benefit is that you may spend that $110 again if you wish, whereas if you put money into your personal loan account, then you cannot touch it again because it is considered a loan repayment. The fact you are able to access the money you overpay on your credit card is a blessing. It means that if you are strapped for cash, then you may re-borrow the money you put back into your credit
Robb and Sharpe (2009) mentioned that in doing so, credit card companies placed students in peril of excessive spending and cultivating financial adversities (p.25). To counteract this issue, a concerned group of individuals encouraged university and college campuses to limit credit card vendor access to students. The intention of the study was to examine the role that knowledge of personal finance concepts and principles may play in college students’ decision to revolve a credit card balance in the level of balance
Unquestionably, when a teenager graduates from high school they go to college to get their degree, but sometimes after graduating they receive their degree and also a credit card debt. Mary Ludlum and Brittany Christine Smith stated that “credit on campus can only be described as a plague” (Ludlum).There is no doubt that students go to college learn skills, socialize, but also because some jobs require a degree. The TERI study reported:
Most kids that have graduated high school have never been educated on the subject of personal finance, so they don’t know things like how to pay bills, or even how to do something as simple as applying for a job. According to a family friend of mine, Ron Hart; who happens to also be an award-wining author and TV/radio commentator, believes that students in high school don’t learn anything about how to get a job or get prepared financially. He states that, “ Students should prepare for a job. Maybe, instead of taking a fifth field trip to the Trail of Tears site, do one to learn about real jobs in an area they might want.” Hart believes that most basic high schools aren’t teaching students how to become financially stable for their future, which can cause major issues. He claims that “few schools teach about the value of hard work, ingenuity, gumption and entrepreneurship. Those lessons are as rare as Donald Trump bumper stickers in the faculty parking lot.” Hart also goes on to talk about how high school does not prepare you for life the same way college will. There are so many more lessons to learn there that people are missing out on. College is very important due to the fact that it will teach students more skills about finance and job seeking that most high schools don’t. In college, kids will learn how to save and budget their money, pay for their own expenses, and prioritize their needs verses their wants. Learning financial responsibility is also something that kids will carry with them throughout their jobs and their life. Having more freedom to understand the concepts of person finance will allow students to make mature decisions while easing their way into real world
Without this opportunity for financial assistance, many youths could not possibly be able to continue schooling. Loans have drastically enabled younger people to have the opportunity to afford and enjoy a better
Instant gratification or easy access to almost everything is necessary, to have the right clothes and the right shoes, but usually they have no money to buy it with. This is where credit cards come into play, and where many individuals see credit cards as free money. They assume that they can buy it now, and of course, pay it later assuring themselves and their family that they will have the money. This comes down to responsibility; can college students handle budgeting their money? According to a study conducted by a Midwestern University shows approximately 66% of college students did in fact own at least one credit card. Some students can handle it and some can’t, it all depends on what priorities that person has. If buying a hamburger or new video game and not thinking about it is more important than paying that purchase off and establishing credit than those priorities are not good. Credit cards are just another factor in growing up. It 's learning what boundaries you have and what responsibilities are
Credit to buy goods or services has been around since the early 1900s, when consumers would use credit to buy goods or services and pay for them at a later date. The bill would send the bank containing a description of the items bough, their price, tax, and overall total. The consumer would visit to the bank and pay it before a set date set by the retailer. Today, “7 out of 10” Americans have one or more credit cards. Credit Card companies introduced the ‘chip,’ a magnetic strip in cards to prevent fraud in brick-and-mortar stores, in late 2015. Major credit card companies, such as Visa and MasterCard, pushed the new cards onto their cardholders by mailing out chip cards and letting the cardholder know their regular card
A credit card can help a teenager understand the benefits of using them. It also shows the importance of saving their money and being responsible and help them comprehend other financial things they will need to understand in the future like auto loans and college financing. A parent, may think their teen is not yet reached the maturity level, and that credit cards are easy to manipulate and are better to use for emergencies. Parents may also think they need to have good money management habits. A parent can help their teen buil...
Students do not have the education needed to use credit cards responsibly. Nellie Mae (August 2007) states that 93% percent of students would have liked more information on financial management topics before they started school and want financial management education made available to them now. This is proof that students crave the education before getting into debt. Allowing credit companies to market their product on campus is too much of a temptation ...
Some credit cards allow you to spend in a currency that your debit card doesn’t carry. Some credit cards are preferred in other countries rather than your non-national debit account. Some foreign countries are smothered with corruption where you need the fraud protection that your credit card has.
Building a financial literacy for your children is important. Giving them an allowance will help you do that. An allowance will give kids a chance to experience dealing with money before it becomes a crucial thing for them to know. The more practice and time they have dealing with money, the easier it will be for them to handle it as they get older. It will also give them more time to learn and perfect budgeting skills. Giving your child this skill early in life can help prevent complications when they are on their own. It is important to learn early on that you must work hard for the things you want. Your parents won't always be there to help you out.
Some of the arguments in the article say that the reason why people are in debt is because expenses are higher now than they were in the 1970 's. Another argument is that we are living in a materialistic place, especially in California and New York. Everybody wants to look good and have the best, so they use their credit card to make these expenses. Some arguments blame teens for using credit cards. Teens already use credit cards and spend money. Banks and financial institutions are also blamed for the rise in credit card debt because they lower monthly payments on credit cards. Others just think that Americans are comfortable with having credit card debts.