When we talk about teenagers, we are literally referring to those between the ages of 13 and 19, so that is a very large range. At 13, children are just becoming old enough to venture out to stores by themselves, albeit with parental guidance. By this point, parents should be able to entrust most children with small amounts of cash. Learning to spend these limited funds as instructed is one of the key steps toward building the trust and experience necessary to begin spending larger amounts, and using different forms of payment.
As teens get older, and spend more time on their own without parental supervision, parents may want to consider making their child an authorized cardholder on one of their accounts. One strategy is to let the teen carry the card occasionally to make specific purchases. Parents can then ask their children to return with a receipt, or check their credit card account online in order to ensure that their account was used only as permitted. Parents may also wish to allow their children to make discretionary purchases under a certain amount, with the understanding that their child reimburses them from their allowance or savings.
After a teenager’s 18th birthday, and as they begin to earn their own money, parents will want to guide them through the process of opening up their own credit card account, while closely monitoring it to make sure it is used responsibly.
