The Best Credit Card to Help Your Kids Get and Understand Credit
Contributed by Lisa Marie
Let's face it- kids don't really understand credit, never mind having to pay a credit card. Here are a few helpful tips to teach your kids about credit and the best credit cards to get them.
A best bet credit card for your college aged kids is a secured one; here's why:
If you're like me, your kids are getting ready to go off to college in the fall with big dreams in their heads about living away from home. Although we all want to help out or kids as much as we can, it is very important that we teach them about credit cards and the dangers which they can cause. The best way to do this is by letting them fall a bit but only with a safety net under them.
Secured credit cards can teach your kids about credit the best way because they your kids will have to have the money paid up front. It's not like a debit card where the money just runs dry, it's an actual credit card with interest, a credit line and the whole nine yard of a credit card.
You (or your kids) can put money into a secured credit card. The credit card will then put the money into a savings account in your child's name, and give them a credit limit equal to the amount of cash in the savings account.
The best thing about a secured credit card
Your kids do have to pay the bill. Now they can learn just how far their money goes while learning about interest, finance charges and late fees, all while establishing credit.
