Best Credit Card Offers specially for you

About Us  |  Contact Us  |  Articles  |  News  |  Tips  |   Tools
ADVERTISER DISCLOSURE
RequestCredit.com is an independent, advertising-supported web site which is compensated by the credit card issuers whose offers appear on the site. This compensation may impacts how and where the credit products appear on our site, including, the order in which they may appear within credit product lists. RequestCredit.com does not review or offer all available credit products.

How Credit Cards Can Teach Kids About Money

[Sunday, August 9th, 2015]

If you grew up in a certain generation, your parents – or maybe your grandparents – may have told you that using a credit card wasn’t a good idea. This old-fashioned school of thought, that using credit cards is irresponsible or dangerous, has been phased out for the most part today. Credit cards are seen as the important financial tool they are; something every adult should carry, not only in case of emergency, but also for everyday use.

However, some people still neglect to teach their children the basics of responsible credit card use. If you have kids, teaching them how to use a credit card is as important as teaching them to use a washing machine or boil pasta. That is to say, it’s essential. Teaching your kids about credit cards is part of teaching them financial literacy, and can teach them about other aspects of money as well. Here are five ways that learning about credit cards helps kids learn about money:

1. Credit cards make it easy to keep track of spending. Using a credit card for most or all of your purchases means you’re creating a log of your spending that you’ll be able to look back on and analyze. When you pay for things with cash, you either need to write down your spending in a budgeting program or notebook, or hang on to a bunch of receipts. Either one is a pain. Put it on plastic and have a snapshot of your spending at the end of each month, easily accessed via your credit card issuer’s online account center, or on a paper statement.
2. Credit cards teach responsible spending. When you use a credit card, you’re not getting something for free, however much it might feel like it. You need to pay that money back at the end of the statement period – or face the consequences, in the form of interest owed. Learning to only spend what you can afford to pay back is a great benefit to using a credit card.
3. Paying credit cards off on time teaches kids about accountability. Knowing when payments are due, being able to afford to pay the amount due by the due date, and always being on time with payments are great lessons for kids. This teaches them to be accountable to the calendar, their bank balance, and their credit card issuer.
4. Credit cards offer a great math lesson about percentages and interest. Teach your kids what APR stands for (annual percentage rate) and how it’s calculated. Learning about interest is a good math lesson in itself, aside from the lesson about responsibility that you want to impart, when your kids realize that not paying off the credit card on time means paying extra in the end.
5. Reading comprehension skills are tested and sharpened by studying terms and conditions. Learning to interpret fine print is a life skill that many of us would do well to work on, even as adults. Go over the terms and conditions on a credit card agreement with your child and quiz him or her afterward. You might both learn something!

Once your child is 13, get a reloadable prepaid card as sort of “training wheels” for an unsecured consumer credit card later. This can go a long way toward giving your child invaluable financial skills for life

Read also

Here’s How To Keep Your Credit Card Safe From Fraudulent Charges
[August 31st, 2017]

If you’ve ever gotten a call from your credit card issuer asking you about an unfamiliar charge, you know the particular sense of dread that goes through you when you think your card may have been compromised.

Continue reading ››

3 Mistakes People Make When Applying For A Credit Card
[June 23rd, 2017]

It might not seem like applying for a new credit card is very complicated. After all, millions of people have credit cards, and most households have more than one. Still, people do make mistakes when applying for credit cards. Here are three of the most common blunders folks are prone to making when they sign up for that amazing new rewards credit card…

Continue reading ››

The Simple Trick That Will Improve Your Credit Score
[April 13th, 2017]

If you’ve ever been turned down for a credit card or offered a sky-high rate on a mortgage, your credit score might need some help.

Continue reading ››
Copyright © 2003-2017 RequestCredit.com. All Rights Reserved
RequestCredit.com strives to keep credit card information up to date and accurate. However, all the credit card information is presented without warranty and can be changed by the credit card issuers at any time. Click the "Apply online" button to see the online credit card application and to review current credit card terms and conditions. Note that RequestCredit.com can be compensated by credit card issuers when the visitors apply for a credit card through the website.
* The RequestCredit.com webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. RequestCredit.com does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the RequestCredit.com website are property of their respective owners.
RequestCredit.com is an independent, advertising-supported web site. RequestCredit.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. RequestCredit.com has not reviewed all available credit card offers in the marketplace.
Disclaimer: This editorial content is not provided or commissioned by the credit card issuer. Opinions expressed here are the author's alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. Reasonable efforts are made to present accurate info, however all info is presented without warranty. Consult a card's issuing bank for terms & conditions.
Information in these articles is brought to you by RequestCredit.com Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles.
Disclosure: Not an access card.