Why Credit Cards Are Bad for Teens

Credit cards are bad for teenagers because they teach financial irresponsibility at a time when kids need to be acquiring a strong foundation in solid financial principals.

Instant Gratification

Credit card use teaches teenagers that they can have what they want when they want it instead of having to plan ahead and save their money.

No Limits

Although credit cards have a spending limit, that is the only indication for a teenager on how far he can go in credit card use. There is no sense of needing to limit spending to the amount of money he actually has.

Payment

Unless a teenager is required to pay her credit card bill, she is learning not to think ahead about the consequences of spending or the need to pay bills on time to avoid interest and penalties.

Temptation

Credit cards make purchases more tempting. If a teen has no credit card and no cash, he has no options. But if he is holding a credit card, even a burger at a drive-through becomes an option without thought to the money being spent.

Future Precedent

Teens' credit card use sets a precedent for buying on credit. While a teenager may be purchasing clothes and wracking up a bill that is still somewhat manageable, this may turn into larger purchases in adulthood that lead to major debt.