About Credit Cards for Teens

Video Transcript

"Hello my name is Roger Groh. Do you have teenagers in your house? Are you trying to teach them how to handle their finances. Have you given them a credit card? Well it's a big deal at least in our house when you start to hand out credit cards but kids have to learn how to deal with it so one of the things that you can do is you can get a credit card from your own credit card company, Visa, Master Card even American Express with a very small limit, $100 limit, $200 limit, or less on it and then hand that card to your child for emergencies. That way your child can't ruin the bank if they go and spend $100 or $200 on clothes. They might get a lecture but they are not going to wipe you out. The chances are a bank will not make a loan to a child. Therefore that card would come from you and be based upon your account and the bank would be looking from you for payment rather than for the child but having the credit card, using it, making the child responsible for the payment is a great way to train kids on how t handle their own finances. So that's a little bit about teens, credit cards, how you qualify, how you do it and make it a very small amount of money. I'm Roger Groh."