It is as essential to talk to your child about credit cards as it is to teach them how to drive. Most children and teenagers look forward to getting a credit card, most mostly for the wrong reasons. 

Tackle the misunderstandings early and when the time comes, you are most likely to be knowledgeable credit card users. There is no secret that college can be costly, and parents often have to send their children to school. 

Buying supplies — books, laptops, electronics, furniture, food, and more — results in substantial costs for mother and dad. If you’re sending your kid to college and planning to send them off with a credit card, here are some things you need to know. 

3 Credit Card Tips to Pass of to Children Before College
Photo credit: 

Make Them Aware That It’s Not Their Money, It’s Only Borrowed

Often children grow up thinking mother and father’s credit cards are only magic. But, the more it takes, the more it costs. That money must be paid back. 

First of all, a credit card only allows them to use the money of somebody else. The bank agrees that a cardholder will borrow some money as long as it is repaid. 

The balance can be repaid in a single instance or over some time, but your child should be aware that the longer it takes to repay the balance, the higher the interest. They need, therefore, to know how and when interest is paid.

Next to that, explore cards with 0% APR Periods. Consider opening a credit card, which will allow them to do satisfying shopping without interest during the promotional time for large-ticket items like laptops and other school needs and essentials. 

Make Sure They Are Not Missing Payments

Parents with their children have tremendous patience. But, children need to know that not everyone is as cautious, especially when it comes to late fees for your credit card. 

Explain to your child the expense of a skipped payment. Banks may call, send mail, and can ultimately want to sue, irrespective of the number, for an unspent credit card balance. 

Credit card firms record fees to credit offices late, destroying their potential chances of obtaining another credit card. If you co-sign your child on the credit card, make sure that they understand that their credit card abuse penalizes you. 

Just like the investors, if your loan is on the line, you won’t be patient. Have a single-error cap — a missed payment, a non-restrictive transaction, and close the account until they are more responsible.

Make Sure Your Children’s Aren’t a Bad Influence 

Credit cards may be a strong possibility for peer pressure or exploitation in marketing. Ensure sure your child knows the importance and existence of ads everywhere. Learn to make rational choices in spending by avoiding impulsive purchases. 

Speak about their peers and how they should objectively think about their choices. Your child, not his peers, and definitely not TV and internet advertisers, does indeed pay for the bill.

Only Use the Credit Card if You Can Afford to Pay What You Borrowed Back 

It is probably the exact opposite of what your kid feels about credit cards. Fees they can not afford to pay back lead to a series of other credit card difficulties: default in credit card payments, late fees, rising interest rates, and a bad credit score. 

When you buy a credit card, your child must be used to worrying about its income shortly. When you don’t rescue your child from their mistakes in your credit card, let them know right away and adhere to your word. 

Many children have better chances of being responsible for their finances because they know that mom and dad won’t cover their mistakes. All customers who borrow money from a financial institution have a loan score.

Credit Score

3 Credit Card Tips to Pass of to Children Before College
Photo credit:

Like yours, your credit score is based on credit report details, a document that includes the credit card history of your family. The most common credit score variant ranges from 300 to 850, with better credit values. 

Responsible credit conduct will raise your child’s grade and demonstrate to your child the benefits of a good credit score. 

This includes improved interest rates, future lending approval, lower security deposits on utilities, and better opportunities to obtain permission from other credit-based applications, to name but a few.


Talk to your kids that the primary way to pay for their transactions – particularly big ones – would be their checking account with the money they have received. Savings lessons and deferred compensation are important.