can your kids handle a supplementary credit card?

by:DIgao     2020-08-05
You may have heard that this video went viral on YouTube, and a kid bought an X-for $400-
The last box is 2016.
Does it sound like one of your worst nightmares?
The idea of giving your child a credit card can be terrible or badno.
However, like many things, it also has its own advantages and disadvantages.
As a parent, you know that you have to help your children, including their need for financial knowledge.
At this point, you \'d better know how skilled your child is financially.
If they are not ready, this is where your role as an authority figure will come in handy.
So what should you do with this?
If your child is still a minor, the bank cannot give them a credit card.
However, if you are an authorized credit card holder, you can give them a supplementary card as per bank qualifications and requirements.
The best time to add them to a credit card account is when they go to college --bound.
However, each bank is different, so it\'s also more advisable to check with your bank to see if your child is an authorized user at the right age.
When you wait for them to reach the right age, teach them all the necessary knowledge about personal financial management, such as the importance of money, good consumption habits and budgets. A T.
The Rowe Price study shows that children have to be aware of money management so that they can become responsible credit card holders.
The sooner they start to build up a great credit history, the greater the chance they will get bank and independent lender loan approvals in the future.
It is a good thing that credit card holders must be 21 years old or older.
So, your child has no choice but to say yes to the supplementary card.
The bank will let you authorize them to use your card.
This can be an advantage because you can focus on their spending habits and avoid the pitfalls of creating unwanted transactions.
If your authorized card users are in arrears, you can easily remove them from your account, and the Bank should also remove these bad records from your credit report.
Therefore, supplementary cards are one of the best ways to train your child to understand every corner of fund management.
Once they reach the legal age of being a major credit card holder, you can help them build their own credit rating by registering them into a secure credit card account.
You have to deposit a certain amount of money in the bank, and the user can only use 80% to 90% of the deposit amount.
Your child is excited and the bank agrees that they can give them a supplementary card, but how sure are you that their emotional maturity is appropriate?
While you may have taught them about personal finance, you should also consider their emotional maturity in the world of \"buy now, pay later\" programs.
It\'s easy to use credit cards, but the urge to resist buying something they don\'t actually need is very challenging.
Your child must know where the money they spend comes from.
They may have multiple sources of funding, such as school allowances and sections
But it is always important for them to understand the value of money.
Once you feel your child is fully prepared for a credit card, you should give them one.
Whether it\'s gasoline, kickbacks, airline miles, or rewards, look around for the right cards.
Can Your Child apply for a supplementary credit card?
First appeared in the financial news and suggestions of the Philippines.
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