Is your teen ready for a credit card?

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A credit card can be of great help to us, but it can lead us to big debts, all depending on how we use it. By making some of the credit card mistakes, you will surely not break any law, but you may be overwhelmed by the indebtedness and penalties of banks. This is especially the case with people who are not aware of the consequences that the credit card carries. These are the teens most often. In order for teenagers to be responsible adults, it is important to prepare them for several financial issues, as we all know that the skills of effective personal finance manager are important for the success of an individual. The following things about money should be understood by every teenager.



Before finishing high school, every teenager should learn how to make a personal budget. It is important that young people learn the difference between income (the money that accrues), costs (withdrawal money) and savings. They also need to understand the importance of responsible budget management based on the idea that costs should not exceed payment. Otherwise, they will accumulate a debt due to which they could fall into serious financial problems.

Credit cards

It takes 18 years to start the application for most cards. However, today best credit cards are enabled for younger than 18 years, and children aged 14-18 can become additional users on their parents’ credit cards. Credit card processing for your teenager can be a great way of giving a pocket money by which he will “exercise self-control” in terms of spending only to the amount his parents allow. It is extremely important that teens possess the necessary knowledge of using credit cards; how they function, whether the membership fee is paid and in what amount, whether interest is paid, what is the interest rate, etc. In addition, it is important to distinguish a debit card (card linked to a transaction account) from a credit card.

Bank account

A transaction account is required for every person when he is employed and starts earning. However, opening a bank account to someone will be necessary already in teen days if, for example, they choose to work part-time through a pupil or student association, or if they receive a scholarship for their school or sporting success. However, it is advisable for every teenager to know how transaction accounts work and to know the difference between current and giro account.


In order to properly prepare the teenager for independence, it is important to get acquainted with the ways and forms of savings. Teens need to understand the importance of creating a savings fund not only to buy an apartment or a car one day or go on a trip, but also to provide protection from unexpected events like failures on various devices or serious situations such as long-term illness, incapacity for work, unemployment, family and similar. It is advisable for the teenager to learn how to save a minimum of 10% of the income for savings and that it is desirable to convert it into an automated process by allocating the money for it immediately, each time they receive a pocket money or salary and before they can spend it on fulfilling different desires and goals. As it is difficult for many to save due to low self-control issues and the propensity for impulsive spending, it is important for every teenager to inform that there are automatic forms of savings like a permanent order that will force each person to save money.



Welcome to the Night Helper Blog. The Night Helper Blog was created in 2008. Since then we have been blessed to partner with many well-known Brands like Best Buy, Fisher Price, Toys "R" US., Hasbro, Disney, Teleflora, ClearCorrect, Radio Shack, VTech, KIA Motor, MAZDA and many other great brands. We have three awesome children, plus four adorable very active grandkids. From time to time they too are contributors to the Night Helper Blog. We enjoy reading, listening to music, entertaining, travel, movies, and of course blogging.

5 thoughts on “Is your teen ready for a credit card?

  • My parents set me up with a credit card while I was a teen, and I think it was a great idea. It taught me about responsibility and money management, and really helped to prepare me for the future.

  • This is really helpful information for parents thinking about getting their teen a credit card. It will teach them the responsibility with handling a budget.

  • This is really great information. I have a savings account for my teenager and she has a prepaid reloadable credit card. This is where she puts money that she earns from working for me on. She tried doing the part-time job thing but with so much going on in her life, working from home as she attends online charter school just made more sense. I would love to work more towards teaching her more money management skills so this post was super helpful to give me some ideas. I appreciate it. Off to check that link for credit card processing …

  • I like the idea of a hands-on approach to teaching kids about finance. With supervision, a credit card can be a great way to understand the value of saving and money management.

  • Great info. Money management is a huge piece of adulthood, preparing teens is sooo important.


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