do you have any credit card debt ? would you give a teenager one?..

[Dancing Fire]

the reason i ask it''s because,i gave my daughter a CC since she started college.it''s scary to hear so many college student get into cc debt.

 

[ammayernyc]

My parents taught me to pay my credit card in full every month. It''s also helpful to have a credit card with an extremely low limit ($200 - $500). That''s also good for internet purchases -- if someone gets the number, he/she can''t really buy that much.

 

[bluedawg]

It is scary. We have no CC debt, thank goodness. We have a multitude of cards but only really use one and pay the balance every month.

However, when I first graduated from college I had two cards... and had no real idea ow to be responsible with them. I charged stupid stuff like take-out dinners... and ended up with a few thousand dollars in debt. It took a while to pay them off (I was in grad school and had a tiny income of a p/t job) and even had them calling me for about a year. It was truly awful. When I did pay them off, it was about ten years before I allowed myself another credit card.

Thankfully, I grew up but I had to learn the hard way. I wouldn't recommend it!

 

[moremoremore]

Not any more but I went crazy in college and thereafter. I think she should absolutely have a credit card. An am ex with your name on it too. Tell her she must pay if off each month and with your name on it you can keep tabs on it. Or a card with a low limit. I think she needs to *learn* how to deal with a cc. and you can help!

 

[Kaleigh]

We don''t, we pay the entire amount right away. We gave our daughter a CC when she was 15. She is 17 now and has never abused it. We give her a budget and she keep detailed records of what she spends and hasn''t gone over her limit. Our son is almost 15 and I would no more give him one than fly to the moon. He loves shopping way too much!!!!

 

[AChiOAlumna]

My parents gave me their CC in college for books and emergencies. I got my own in college and got a few thousand dollars in debt (not hundreds of thousands!). Once I graduated and began working, I was able to pay them off within a few months. Since then, we ALWAYS pay off our CC every month...we only have one and use it to gather miles/points!!!

It is scary walking on a college campus every Fall...the number of kiosks that are offering "free" stuff for getting a CC is almost uncountable!!! It''s no wonder freshman can''t control their spending...there''s so much to choose from!

 

[Mara]

I am hugely against the fall bombardment of new college students with cc's etc. So many kids need to be TAUGHT how to use credit, and that does not include just giving them a new card with a $1k limit and telling them to have fun and/or to make sure to pay it off. College is the worst time for a kid to 'learn' how to manage their $$.

I got into alot of debt when I was in college because I had never had any money of my own before to manage, and I was one of those stupid kids who thought, oh I will pay this off later etc. It took me years to pay it off and I learned alot from it.

Greg was telling me recently that some high schools are considering adding a 'Manage your Money' type class to seniors so they can at least be aware of some of the pitfalls out there before they head off to college. If I had attended one of these classes it would have made the world of difference IMO.

I think the smartest thing a parent can do re: this issue is to get their kid a store card or something like a Macy's in HIGH SCHOOL, with a small limit, aka $300 and help teach them how to use it...and use it wisely. aka get them into the habit of paying off each purchase each month, teach them how to spend and what not to buy etc.

I bought so much crap with my 'new' cards when I was in college and I couldn't afford it since I was paying my own way through school. Lesson learned, but I always feel like whenever a kid gets a credit card, they should have to take some sort of tutorial on how to use it. Banks just hand them over and in SPADES, I got 3 or 4 my first year of college and it was all downhill from there.

Oh and if your kids do get into trouble, DO NOT PAY OFF THEIR CARDS for them!! I have friends in their 30's who are still getting their parents to do this because the parents never drew the line and said you have to be responsible...it's always 'well I will help this one time and not next' but in reality it doesn't end. Plus then these gals get married and their hubbies are left holding the bag on how to educate their wives on how to spend wisely. My parents drew the hard line with me right away, and said it was my responsibility and because of it, I really wised up fast. Good for me because Greg is a stickler for no balances.

 

[moremoremore]

I remember it like it was yesterday. The credit card company outside the book store. That''s where I got my first. And it killed me for years.

 

[Mara]

YEP mmm...outside the bookstore, ME TOO!

 

[moremoremore]

With that big banner for all to see! And then that led to the Macys card. Yeah, took my about 2 hours to run up my $500 limit. That's why I can't be trusted with a cc. Hubby keeps close tabs on me. I was spoiled growing up e/t the parents do not believe in debt either. I tend to lack a bit of self control

... Now there is one card I'll sneak a purchase on but it gets paid off in a billing cycle (or two...last month I cheated

) I ran that sucker up to about 2 grand in the last two months...hence, I can't be trusted...but I paid it off the other day... I can't live with a balance. B/c hubby would KILL me

It's so easy to charge...and it hurts to pay off...

 

[njc]

I got a CC my soph year of college at the encouragment of my mother to use for emergencies, which was the *only* time i used it. I was good until the last couple months senior year. I was running low on money and charged about a thousand bucks thinking i would have a job VERY soon and would pay it off. Took me 8 months to find a job and the thousand turned into 4 thousand because i kept using it. Once i had a job though, it was gone in a couple months and since (3 years) i pay it off every month.

One of my roommates in college had a ridiculous number of cards (every time they sent her one, she kept it) and by Jr year she had racked up $10K (!!!) in debt. Her parents bailed her out, but not before she totally wrecked her credit. They would constantly call looking for her because she just stopped paying the bills. I never really figured out what she spent the money on... her parents gave her a VERY healthy allowence on top of paying for rent, books, etc. She was lucky her parents helped her out, but dont think it taught her responsibilty.

 

[hoorray]

We have several credit cards, which we use all the time, but we keep the balances at $0, paying them in full every month. The number of people who run credit card balances astounds me -- it's such a waste of money. The majority here seem to pay the off tho... yeah for us

.

I am completely against giving kids credit cards without helping them learn how to use them. It just WAY too easy to get into a financial hole that is really tough to get out of for young people, just starting out.

 

[lost on 5th]

i was another one of those "out side of the book store" CC startups. i had NO idea about credit card structures etc and rates and the whole process. at least i was good with money and never overcharged.

i think it is something that is good to have parental guideance on tho. nothing over a 1k limit however. this way you can help guide them in the correct direction. and at some point they need to learn how to manage their money. i transitioned into a credit card from debit cards, so i folded over the same process... only charge what i can cover in my bank account that day.

credit cards function as a financial safety net that im out of grad school and building my financials. never as a shopping fund.


p.s. i would stay away from store credit cards. IMHO that promotes spree shopping/spending....not smart money management.

 

[Patty]

We carry NO credit card debt. I''m crazy about it. I hate debt, especially credit card debt. I have a friend who has never had any savings and is lucky to make her minimum payments every month. And yes, her habit began in college!

Our older daughter has one card that she pays off every month...IF she uses it. Our second daughter is 21. She has no credit cards and I do not want her to get one just yet. She''s too impulsive with her shopping and likes "stuff" too much. She has an ATM card with her checking account and she uses that all the time. I understand about it being important to learn how to use one responsibly, etc., but daughter #2 is just toooo scary.

 

[LadyluvsLuxury]

My parents refused to co-sign a CC for me. I got my first one on my own in college. I used it mainly for gas to build up credit (and boy did it help once I graduated). Hubby and I have never carried a credit card balance, when we DO charge we pay it off every month. I see too my friends many years out of college still struggling from the debt they created unneccessarily

. Hubby and I have learned to pay for our indulgences when we can afford it, makes you truly appreciate the cost of things more.

 

[Blue824]

In Illinois you have to pass a Consumer Ed class or test to pass high school....I cannot explain to you how much that helped me! I am always surprised at what people do not know. I think more people should be required to take this, it may prevent many problems.

In addition to that, my parents made me a very financially responsible person. I think that has a huge impact...my parents have never been extravagent, and that rubbed off on me (well...that''s not true, I love my purses, but I never ever buy if I don''t have the money). At college I had friends that had never had a savings accounts, which totally shocked me...and then there''s my parents that never let us spend birthday money or made us deposit half our high school job checks. They helped us invest money in stocks, learn about CDs, and IRAs. IMO, its never too early to teach children about money.

My parents gave me a credit card off of one of their accounts when I was 14 or 15. I had a budget and it was also for emergencies. I signed up for my own credit card, because my parents wanted me to, when I was a freshman in college. By the time I was in college I knew about the dangers and I felt confident I''d be ok, as did my parents. However...my mom still had the bill sent to my home address and she''d look over it every month and definitely give me an earful if she felt I was spending too much.

I think you know your daughter best, if you honestly think she''s going to get herself into trouble, don''t do it...or have her do it and have them put a limit of 200 or 250 on the card. Even if you don''t approve of her getting one on her own, they make it super easy for her to get one and you wouldn''t even know. I''d just have her get one so she could learn to use it responsibly.

 

[ForteKitty]

My family must be the only one who charges everything on our CC! Starbucks, gas, food, groceries, clothes, etc.... even if it's $1. Why? Because we get 3% cash back (7% for gas)! I refuse to pay in cash if i can get a percentage of it back.

However, I do work off my budget, so if I cannot afford to pay it off each month, I will not buy it. I am very good at controlling my spending habits. For me, CC is simply more convenient than carrying cash, and easier to control because I can look online to keep track of my spendings. I find that I actually spend less if I charge my stuff.. watching all those things deters me. If I carry cash then it just disappears!

Nobody in my family has debt, except for mortgage. Our cars are paid in full w/ cash, after charging what they allow, of course.

I love my credit cards. It saves me so much money in the end.

edited to add...
I got my first CC at age 16.

 

[Momoftwo]

My 21 year old son has had a cc since the summer after his first year of college (2 years now) and pays it off every month. My 19 year old son is getting one this week. Both started with $750 limit and my older son now has a $1,000 limit. We have taught them to be responsible with credit by example. I wouldn''t give one to anyone under 18 for any reason. Borrow mine for specific reasons, yes, their own, no. The funny thing is we hadn''t had cc debt for years til our boys went to college and then the bills for everything beyond their tuition and room and board came up (car repairs on paid for cars, etc). Still keep the balance at less than half the limit and never just pay the minimum, always 2-3 times at least. Once they''re done with school, the balances will be back to zero. I''m not afraid of credit cards and we have outstanding credit so we hope they''ve seen that. My 21 year old plans to buy a condo as soon as he can after graduation next year.

 

[lost on 5th]

Date: 6/8/2005 5:16:50 PM
Author: ForteKitty
........ I find that I actually spend less if I charge my stuff.. watching all those things deters me. If I carry cash then it just disappears!

i soooo agree with you! cash in my pocket is money spent in my opinion!!!! an ATM is far more evil to me than my CC.


i also track all spending via the net. be it debit or credit or checking or savings. at least once a week i know exactly how much i have spent, what costs i have coming up and overall where i stand. (via a series of excel spreadsheets which have tracked every cent other than cash over the past 3 years)

 

[MissAva]

I still am in college...so yes I do have a CC. I dont have any debt. The card is in my name so if soemthing went wrong it would be my credit on the line. I choose my credit card myself after doing some research. I get 1% back on everything and 5% back on gas, drugstores, and grocery stores. The limit is based on your credit and I call and have mine kept lower (1200) everytime they try and raise it. I dont spend money I dont have and I keep all of my receipts and I check them against what is posted online, which is where I also pay my bill. I would say let her have a CC but that doesnt mean she has to be put on your account. Besides there are some major ups to CC, I earn Upromise points for my younger siblings, I earn the % listed above back and if soemthing goes wrong a CC can and will refund your $ asap and with debit cards that is not a definate.

 

[MissAva]

Also if you can get her quicken I have found that this program is a hge blessing in keeping track of things and if my ''rents ever desired to see where I was spending what they could just download it to the same program on their computer.

And I have to ask Miss Mara what card do you have?

 

[Dancing Fire]

she haven''t gone overboard yet.she use the cc for purchasing books. i pay off her cc every month,she has no income.i set her card limit at $2000.

 

[codex57]

Got my first cc in college. To this day, I have no credit card debt (at 20%? that''s crazy). My sister got one in high school, as did my fiancee (how come girls always seem to get cc''s earlier?) Neither have credit card debt either. My parents pounded into us that we never carry a balance on a credit card. Only debt allowed is for investments that will bring back more money like real estate.

 

[perry]

She needs to learn how to handle credit cards responsibly.

They can be great. For years I paid them off every month.

They can be a lifesaver. When unemployed I was able to buy needed medical treatments and other things, like food, with them. I could only do that because I had a good credit rating and high limits built up over the years.

They can really crimp your life if you get major debt. I maxed out at about $45,000 in CC debt before I was able to restabilize. Many people advised me to declair bankruptcy - afterall I could live a good life if I didn''t have that debt. My position was that as long as I could work productively it was my debt to pay off. Things have not been easy, but I now only have about $15,000 left of that debt left (all on one card). This year I''m sluffing off on debt payments as other "one time" issues are eating about $15,000 in cash. Unfortuanelty, I am no longer sure I can afford the center diamond for an engagement ring that I was looking as about $9000 of this was unexpected. Thus is life - and I am glad that I have the resources to pay this without going into more debt.

They can be great tools. I have 2 other "active" credit cards that I use for day to day things. One personal, and one for my side business. I pay these off every month.

The worry is high credit card limits, few people can really handle them. It is so sedcuctive to be able to buy what you want when when you want it with just a piece of plastic. I have 2 credit cards that just sit in a vault that I do not carry or use. I have a personal line of credit as well. Allmost all of my CC card limits are on the order of $20,000 or more. I don''t really pay that much attention; except that I did figure out that I have enough non-secured credit to buy my house. It has not escaped my attention that I could buy most small cars on any one of my credit cards at will. So the important thing to learn is self control.

Overall I have no regrets as there were medical test and treatments that I really only could get because I was able to charge multithousand dollar items to a credit cards because you cannot get advanced treatment when you have no or a minimal job and no health insurance. Yet it was those test and treatments that allowed me to return to a productive member of society again and move up from a menial type job.

Perry

 

[Headerlyn]

I am 22 and do not have a cc. My parents always taught us to act responsibly with our money and I have experienced firsthand plenty of friends and acquaintances getting into too much financial trouble with cc. I have had a debit card since I was 18 ( I have also worked since then and have the income to contribute to a debit card), I believe and strongly recommend them to teenagers/kids going off to college if they have an income to contribute to the card. Otherwise, a cc with a very small limit ($300-500) to cover small emergencies is the next best option IMO. CC are not destructive tools; however, the owner needs to know how to properly use them.

There are an infinite amount of kids that go off to college and apply for cc (usually outside the bookstore) and get in a huge mess because they do not understand the full consequences of what is taking place. I am very proud that I never had a cc while I was in college because my freshman and maybe sophomore year I am not sure I would have been financially smart and responsible as I am now.

I definitely think there should be a class taught everywhere before you graduate, as someone posted above, that educates individuals on credit cards, the advantages, disadvantages, interest rates, etc. As for giving a kid a cc when they go off to college, yes I would with a very small limit but if they have any type of income I would also recommend a debit card. With a debit card you can only purchase the funds your bank account holds. This teaches a person very quickly you can truly only buy what you can afford.

 

[AmberGretchen]

Such an interesting range of perspectives and experiences on this issue...

My mom gave me a couple of cards that were linked to her account but with my name on them starting in high school - I had no income (I did ballet 30-40 hrs per week plus school), and she knew that I would be responsible with them. Now I''m 23 and I''m in grad school and I have a minimal income and I still have those cards and I use them occasionally for stuff, but much less than I used to. Most of my learning about managing money came from having a couple of sessions with a financial planner with my FI (then bf) after college when we first had an income and lived together. I think this was invaluable - we are compeltely debt-free, planning to get a credit card to build our credit as a couple, but to only use it occasionally, and we are saving a significant portion of our income, with some occasional indulgences but nothing we can''t afford easily with cash. The only debt we have is FI''s student loans, which we are paying off with help from his parents. I think that teaching your kids about finances is great, but even if you can''t or don''t, all is not lost - I knew nothing "formal" about managing money until after I graduated from college, but I am now confident in mine and FI''s ability to manage our finances responsibly in our life together because of what we''ve learned in this first year out of college.

 

[Sparkster]

I pay everything either by cash or Eftpos (electronic funds transfer at point of sale). The way I see it, if I don''t have the actual money to spend on an item, then it means that I can''t afford it. My FI however, lives off his credit card.

Giving a credit card to a teenager depends on the teenager. If they have been shown to be responsible with money then start them off with a low limit credit card.

I don''t know if minors in Australia are allowed credit cards. The biggest debt children in Australia get into are mobile phone debts. My FI''s son was given a mobile phone on a monthly plan - well, he got a monthly phone bill for $400 because of the SMS messages he was sending!!!!! At $0.25 a message that meant he sent 1,600 messages in that one month. And he''s not alone with mobile phone debt. There are so many stories about how kids use their mobile phones to vote several hundred times on Australian Idol, Big Brother and the like. The only sensible thing to do is ensure that the kids are provided with, say, $20 phone cards and when it runs out, then the kids pay for new cards with their allowance.

 

[websailor]

When I went to college I was pretty much all on my own in regards to finances - I knew ahead of time that only a tiny bit of financial help was going to come from my parents. I did get a credit card, which was not so easy in those days and used it just for emergency type items. Both then and now I pay the card(s) off every month, with the exception of a very few times when we decided to make a purchase and pay it off in several payments.

I do credit my parents for teaching all of us kids to take care of ourselves financially.

Since I don''t have kids, I can''t truly answer would I give a teenager one. As others have said, and shown, it depends upon the teenager.

 

[Momoftwo]

Where are these 20% rates coming from? My rates are less than 8% and both my boys cards are around 9%. You have to shop around. There are plenty of low rate cc''s. I never open store cards though, because they''re all 20-21%. I don''t care if it''s going to save me 10% on my first purchase, what a racket. If I accepted every card I was offered, I''d have 30-40 store cards now. Also, I agree cards can be a lifesaver, never had to, but we have over $45K in available credit on our cards. Like they say, if you need the equity in your home, borrow it before you lose your job. I know a couple that lived off their equity for 2 years while building their business, if they hadn''t had that line of credit available before he lost his job, they would have lost their home and not been able to pay for everything else. Now they''re back on their feet and paying it all off. I applaud anyone who takes on their bills responsibly and doesn''t declare bankruptcy. Because, in the end, we all pay for all the bankruptcies. The cost is passed on to the consumer.

 

[mingagreen]

Well we were in CC debt, but we just consolidated and now it will take 20 years to pay them off but hopefully we are done! We started out with one then all the sudden we had 5! Bad news! They did afford us alot of fun, travel and helped build our house but.......NO MORE!