Listening to the radio yesterday while driving they mentioned there is website now that allow kids or children to have a credit card but the parents still have access to their credit status and credit limit. And they talked about how many parents agree on this and how many also doesn’t. The parents who agree on this they need to know that a credit card charge is a loan and it has to be paid and usually with interest  and understand what is the risk if they missed the payments or late payments this will damage your child’s fledgling credit profile and of course as well as the parents.

In this way also it is not a good way of teaching our children to do credit because when they grow up they will always rely on credit. I don’t say that credit is not good especially in this economy but remember credit you still have an obligation to pay and it is a pain and headache to pay especially the high interest rate.

The good thing to have a credit card is that if you don’t have available cash and then your children and kids need it they can have it. Also the advantage of having credit cards is this will help build credit history especially if your kid is on the college horizon. Having a credit card is very convenient for paying bills also in emergencies and other situation that where in cash isn’t practical. You can also monitor their spending and what they buy.

The danger of having credit card to our children when they use the card unwisely and irresponsibly and it will accrue a large debt and those inexpensive eating to a fast food joint can add up to a big bills. But I guess it also depends on the maturity level of our children or kids. If your kid is financially mature this would not be a problem of having credit card.

Have a talk to your children or your kids before you decide to give him or her credit card. You need also to talk on how to use credit wisely and responsibly. You need to create a budget and he or she need to follow what has been said on the plan or the budget. You can start her/his credit limit low at first and you can also shop around for the best interest rates and best deals and offers.

Remember credit is an obligation if you default on credit card payments you are responsible as parents and this would ruin the credit standing of your child. But with the proper guidance this would help your child a first experience with credit and can be positive one and this will help and form her/him to have a good financial skill that would last him/her for a lifetime or in other way around, not I hope. But it is up to you parents to decide wither credit card is good or bad to have it for your children.