Hey Kids- Do You Still Want a Credit Card?

Aren’t we in such a wonderful age? Quickly pay for things with a credit card! Never again will you need to save to get something. Now you can buy it and THEN pay for it! Right? Wrong! Credit cards are the real thieves of the money world! People who don’t understand credit cards can go over 100,000 dollars in debt! You need to understand that one thing a credit card is not is free money. And they are also the jewel in the sand! When it comes to interest rates, that is.

Did you realize that credit cards can charge up to 28 percent interest? If you have 100,000 dollars in debt, thats 28,000 dollars you’re paying to the bank just because of your wild spending habits! Now I know that some people out there have good spending habits. Only buying things when they know they have the money. But it’s just plain old unfair for those who save before they spend. With all these rewards you get for using your credit cards, like air miles, or don’t pay until 2008. What rewards do people get for saving their money that aren’t self-earned? It’s kind of like how someone gets praised for quitting smoking, whereas the person who should be getting praised is the one who never started.

If you’re about to give a kid a credit card, you’ll be damned if you charge it to you’re account. As long as it’s not their money they’re spending, they don’t really care how much they spend, or how much more you have to pay then what they bought costs.


Mark S. said...

This is completely true, but with all credit cards you get to choose your limits allowing you to stop your spending at any time. There is also the option of a prepaid card which you must have the money in order to spend it, thats almost the same as a debit card but it can be used anywhere unlike debit.

William Blake said...

I think it’s wise to give kids a credit card so they can learn how to be responsible with them before they get out into the “real” world and get hammered with offers for cards. It’s all too easy to charge up a significant debt and if they don’t know the dangers, it’s more likely to happen.

I would apply for a separate card that they can use. Have the credit card company put a reasonable low limit on it - something that your kids could repay over the course of a few months out of their allowance or what they earn at a job.

If they charge up too much, they’ll have to repay it from their allowance or income - just like they’ll have to do when they’re out on their own. A few months with no pocket money will be a good lesson in financial responsibility.

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CreditAdviser said...

Yeah... Probably you're right, but! I don't think that mankind can't refuse credit cards for now... Dependence is too strong...

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