This is the second installment of New Law Limits Teens and Credit.
In February 2010, new legislation will limit teens from getting credit cards, unless they are able to prove the means to pay their own bills, or if a parent risks his or her own credit score by co-signing. (See Teens, credit cards and debt – New legislation.)
The good news? Prepaid credit cards with trackable spending offer a convenient, low-cost alternative.
If there are concerns about responsible spending habits, Ken Lin, CEO of Credit Karma recommends “parents look into pre-paid debit cards or secured credit cards for their children rather than traditional credit cards.”
When you taught your child to ride a bike, you held on until they were steady. When you taught them to drive, you were right next to them in the passenger seat. Helping your child create a budget and track spending until they’re ready to take off the credit care training wheels is a lesson they will hold to to for life. The most important benefits include:
|Fostering abundance attitude in kids|
|Caring for aging family members in a digital world|
|Treasured moments: Fresh perspective on family photos|