Credit card use by children: - Keep these things in mind before giving a credit card to your child

Using credit cards has become very common these days. Often people also use credit cards for their monthly expenses. Not only can this but credit cards also be given to children after a certain age. However, it is a huge responsibility.

Before giving a credit card to your child, you must ensure that the child uses it wisely and only when needed. For this, he should know the importance of money. Along with this, you must also give him a financial education. So, today in this article we are telling you about some such small things, which you should keep in mind before giving credit cards to children-

Keep age in mind

Whenever you give a credit card to a child, first keep in mind his age. The child must at least be intelligent enough to spend money wisely. Many times we give credit cards to children in their early teenage years, but at that time children are not so big and responsible. Therefore, give a credit card to the child only considering his age and intelligence.

Set limit

Every bank sets a limit for the credit card. But when you are giving a credit card to the child, it is your responsibility to set some limits on the card yourself. Nowadays you also get this option from the bank. When you set a limit on the card, the possibility of the child spending unnecessary money is reduced to a great extent. In this way, he also learns to spend money wisely.

Provide financial education

It is never enough to give a credit card to the child for his needs or his expenses. Rather, as a parent you will also have to educate your child financially. For example, you should explain to the child about budget, interest rates etc. Tell him how he can decide his monthly budget. If credit card payment is made late, it can increase interest rates or hurt credit scores. When you explain all these things to the child, he uses the credit card correctly.

Keep an eye on expenses

As a parent, you must keep an eye on your child's expenses. Regularly monitor your child's credit card usage. Try to get credit card message alerts on your phone. This lets you know where and how much the child is spending. If the child spends unnecessarily or unnecessarily then explain it to him lovingly. Along with giving a credit card, it is equally important to make some financial rules and goals.

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