Comments on: Teen Credit Cards

By: Credit Cards for Teenagers

Credit Cards for Teenagers — Wed, 17 Nov 2010 21:05:19 +0000

[...] I decided to do some reading on the topic and one of the first posts I came across was from Frugal Dad and it was perfect! I love when a blog post can help me verbalize the thoughts percolating in my [...]

By: FinancialBondage

FinancialBondage — Sat, 15 May 2010 22:41:15 +0000

Parents need to teach kids to say no to credit cards.

By: Alex

Alex — Sat, 16 May 2009 18:05:17 +0000

Thanks for sharing. It is useful for everybody.

By: Gerraldine

Gerraldine — Sat, 25 Apr 2009 03:40:40 +0000

Perhaps the issuer is taking advantage of the latest trend in spending as reported recently worldwide.

Debit card has suprisingly grown leaps and bounds since the financial crisis.

For example in Australia, there is a growth rate of 16% for debit cards in 12 months in 2008 if compares to 2007.

MasterCard Australia has also reported increase in application for debit cards while credit cards application has decline.

By: John

John — Wed, 15 Apr 2009 20:20:55 +0000

You know I checked out that Current Card (by Discover) you began with , and it is actually much better than cash! There is no credit check (so it can’t hurt a teen’s credit), and I can monitor and restrict my teen’s spending. They have an option to restrict certain types of purchases, such as Alcohol and Tobacco. There is even a promo code for the first month free! (EX4091)

Plus, by loading the card with my own Discover Card (or another rewards card you may have), I actually earn cashback on the deposited amount!

I seriously suggest trying the card out for your teens. It is perfect for new drivers who need to get gas and groceries.

By: Headless Mom

Headless Mom — Thu, 26 Mar 2009 09:24:08 +0000

We got our daughter an American Express card for a few reasons. First and foremost, they won’t let you do it until they are a certain age, (at least 17, I think,). Second, and most importantly, it is directly tied to their SS#. Third, as the parent, you can ‘boot’ them off of your account anytime and you are not responsible for their charges. Fourth, she was about to enter college and needed something for emergencies. Fifth, she understands that AmEx is a card that HAS to be paid each month-that means no surprises.

I feel safer that she has something in her wallet that she can use if she needs to. We have authorized one gas fill up per month, no questions; after that she has to call us to get an ok. Interestingly enough the only other time she’s used it was for buying books online.

I feel that this is a great card for establishing credit, as well as giving mom some security for something ‘bad’ happening that she needs bigger money for.

What do you think, Frugal Dad?
P.S. – Sorry, forgot to tell you great post!

By: Headless Mom

Headless Mom — Thu, 26 Mar 2009 06:15:56 +0000

I feel that this is a great card for establishing credit, as well as giving mom some security for something ‘bad’ happening that she needs bigger money for.

What do you think, Frugal Dad?

By: thisisbeth

thisisbeth — Thu, 26 Mar 2009 03:39:16 +0000

When I graduated from high school, my parents gave me $500–in $100 bills (the same applied to my siblings). My dad had a boss who used to pay out the bonus in cash, rather than a check. The boss knew that people rarely get a chance to handle that much cash, and it made the gift more special. My dad applied that theory to our college graduation. While I soon took the cash to the bank, for those days I had it, it was pretty cool. I’ve gotta admit, I still like it when I get cash.

My parents put me on one of their credit cards when I was in high school and went on a school trip. They didn’t want me stranded. However, it was very clear–without a lecture–that it had to be a real emergency before I used it.

By: Alison@This Wasn't In The Plan

Alison@This Wasn't In The Plan — Thu, 26 Mar 2009 03:07:45 +0000

It seems that sometimes people think that a person (whether they be college-age or older) will suddenly wake up one morning and understand how credit cards work. Teaching teenagers the value of cash is important, but I think teaching them the link between actual money and plastic is equally important.

Some kids may be able to learn the ins and outs of credit by listening to an explanation by mom and dad, but other kids will need to experience this on their own. For the later group, a credit card of their own would be a good teacher – provided it’s their own money that pays the bills!

By: Cyllya

Cyllya — Thu, 26 Mar 2009 02:56:21 +0000

I’m not going to comment on Discover’s product but on some of the more general points….

For me, cash stopped being cool when I realized that, uh, you can’t buy much with it. What, am I supposed to shove a $20 in the floppy disk slot to pay for something on the Internet? Remember, teenagers often have no transportation outside of their parents graciously sacrificing their time to give the teen a ride someplace. (Never mind the other reasons you might want to buy something on the internet.) It was such a hassle every time I wanted to buy something. And, no, having it be a hassle to buy something is not a good thing.

I never saw how a bunch of paper and metal pieces representing a concept was any more tangible than a number on your computer screen representing the same concept. Physical currency is a waste of time, space, and resources, and I can’t wait to see the day it becomes limited to collectors’ items.

Having recently been one, I am miffed by your treating of teens as morons.