6 Reasons Why Kids Should Not Use Credit Cards
4. No way of knowing where the money is going
Even if your kid is earning his or her own money, the income will not be too high. Since your child has a credit card, you will have no way of knowing how or where the money is being spent. Your child may end up taking a wrong turn and you will not even be aware of it.
5. Carrying balances from month to month
Having a debt is a great burden and it takes a long time, even for an adult, to realize that. So, you cannot expect your kid to understand how important it is to not be under a debt. Before they know it, they will be in a hole which will keep on getting deeper with every purchase.
6. Long-term effects
If your kids have a credit card and are not careful with their money, this may lead to bad habits that they will carry into their adulthood. They might mistake credit cards for power. It is extremely important to teach your kid what money can and cannot do, during these formative years.
