[Update: Some offers mentioned below have expired. For current terms and conditions, please see card agreements. Disclosure: Cards from our partners are mentioned below.]
Iโve recently been getting offers for prepaid debit cards targeted at young teens. Hereโs the first sentence of one I got a few days ago: โItโs not always convenient to give teens money when they need it.โ No kidding! This offer was targeting my 14-year-old son, but the letter was addressed to me and itโs selling me the idea of convenience.
Prepare to start seeing a lot of these offers. On the one hand, I do appreciate the up-front nature of this offer, which by the way, was from American Express. At least the issuer acknowledges Iโm the gatekeeper to my sonโs wallet.
Remember the ill-fated Kardashian Kard and how the marketing was targeted directly at your teenager? I think weโll see more Kardashian-inspired debit or credit cards sponsored by celebrities. But thatโs only one reason why I believe itโs important to teach young kids about the concept of credit.
[Article: Getting Kids in on the National Financial Capability Challenge]
How early should you start? You can introduce basic concepts around the age of ten. Note that I said concepts, not prepaid debit or credit cards. In fact, if your kid is mature, start as soon as he or she can handle 3-digit addition. But donโt fret if you have a 15-year-old and youโve never discussed this. Iโm not going to say itโs never too late to start, though. If you wait until they graduate from high school, youโve waited too long. Itโs essential they develop responsible credit habits before they ever set foot on a college campus.
Kids mature at different rates and only you can decide which steps theyโre ready for. But here are some guidelines to considerโฆ
How to teach kids about credit ยป
Image: _Dinkel_, via Flickr.com
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