RICHMOND, Va. (WWBT) - Around 21 percent of the more than 1,500 parents surveyed by CreditCards.com said their kids have used their plastic without permission. It’s why you need to sit down and have a real conversation about your own credit journey with your teen - even if that journey wasn’t always good.
Kids learn from example and they need to understand that a credit card is not free money.
If you do get them a card, Cherry Dale the financial education director with the Virginia Credit Union says start with a very low balance. Say just $200 or $250 dollars.
“Let them be accountable for that but then also keep yourself on the loop on the statement maybe it’s online you get the password :50 to where you can help guide them,” adds Dale. She also says if they mess up. Let them figure it out. You can help them but don’t go right in and bail them out or they’ll just do it again.
And teach your children about interest rates. Let them research the card with you-- so they fully understand how it all works.
The Virginia Credit Union is also offering a few FREE teen money classes this summer:
- Aug. 14: Virginia Credit Union Headquarters - 7500 Boulder View Drive, Richmond, VA 23225 - Time: 9:30 a.m. - 12:30 p.m.
- Aug. 1: Richmond Public Library - Time: 10 a.m. - 1 p.m.
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