Encouraging financial independence is very important when you have teenagers.  You want your teenager to understand that money doesn’t grow on trees, as the frequent phrase says.  Some individuals believe it is a myth that credit cards will teach financial responsibility. 

In fact they believe it teaches irresponsibility, but isn’t this more like the parents who are teaching these methods?  Some parents have said do as I say not as I do.  It is a very common phrase, but it doesn’t really teach the teenager anything.  The basis for teaching financial independence is starting out young and having the practice yourself as the parent.  If you teach your children there are consequences for spending money on unimportant things like music, tickets, or other incidentals then they will use the credit cards for teenagers in the worst possible light.  However if you teach them that they are responsible for the charges they make with the card, and that they can’t have a continuing balance, as well as if they make a late payment they are responsible for those payments as well you are teaching them responsibility.  The other thing that goes along with these cards is not bailing them out.  You should make it clear that if they miss use the card in any way it will be taken away and they will be paying for the charges by getting a job that will cover the costs.  There are of course many ways that parenting properly can teach responsibility.  Added to that you have specific credit cards for teenagers that makes this lesson even easier.

The prepaid method of credit cards for teenagers is your best option if you want to have the best control on the situation.  These cards are a kin to the ATM cards.  There has to be money in the account before it can be used.  So if you don’t want your teenager running around buying just any old thing you can keep the balance low and if they miss use the card you can close the account or not put money in the account.  They can’t overdraw or up the credit limit on this account as it is in your control.  There are some downsides like the transaction fee, start up fees, and the reload fees.  It is best to make the teenager aware of these costs and it is even better if they understand the fees are coming out of their allowance or bank account from their job income.  No one even a teenager likes to give someone else money for nothing. 

Your other option is co- signing on a credit card with the teenager and making sure you check the balance daily.  This helps you to determine if they are going to miss use the card and implement the appropriate recourse of action.  If you want them to feel free with the card then credit cards for teenagers should be earned on a trust basis.  You also want to make sure you get a card that offers the best interest rate possible for them.