To say that I was a bit shocked when this arrived in the mail for my nine year old (yes you read right, my NINE year old) would be a bit of an understatement. It is an actual Visa Debit/Credit card. Although you have to add money to the card to use it, I was very surprised that this would be mailed out to a child. Even worse, Cody was chomping at the bit to use his credit card. We had to explain to him that credit cards are NOT free money. It was an important lesson for him to learn.
I had actually been thinking about getting similar cards for my older boys (the teenage ones, the ones who are 15, 16, and 18) through a service called BillMyParents after learning a little more about them when I attended BlogHer. I got to watch a funny video that explained more about the service which I've included below.
But... all of this got me thinking about how important it is to teach our children about money, especially about credit cards. Many people do not learn how to use credit wisely, and then when they get their first credit card it is after they have already left home and have no one to teach them about the benefits but also the pitfallls of purchasing things using credit cards.
I am planning on incorporating some lessons on handling money for all of my children (yes even the little ones). Although I don't think I will be getting them their own credit cards, I think it is important to start teaching even the youngest ones about the value of money.
What things do you do to teach your kiddos about money? Have you had these conversations?
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I met that company at Blogher, also. After thinking about it, I felt uneasy, like it would confuse the whole credit card issue. I had just read a study that showed people had a much harder time spending cash, then deducting money from an account- the reason why casinos use chips for money, it's easier for you to spend without feeling the pain. Have You decide if you will use Bill my parents? I'm inclined to think no, even though it would be neat to use.
I keep going back and forth - as a parent I love the idea of knowing exactly what they are spending their money on. It would be similar to them getting a banking debit card which my oldest (18) has now- but you are right - he spent a lot more freely when he first got that card than he did with cash.
I can sense we are not that far from this. For now my daughter has spend, save, and donate jars. She really doesn't have a regular allowance though. In time I guess...
I really like the idea of spend, save, and donate jars! I think I might implement that with my younger boys.
We have an almost 12 year old who is constantly asking when we're getting a new car. We drive an 11 year old mini-van that works just fine, but it is getting old (windows don't work, heat is questionable, etc). We're planning to drive it until it dies. But her insistence on a new car made me realize that she is not getting good financial training! I like the idea of the credit card for the kids. I think learning to use it and how to use one responsibly while under the eye of a watchful parent is so much better than getting one even in your 20's and not having a clue how to use it responsibly. I would prefer my children not use them, but I also see the benefit to them (if used right, it's free money for 30 days!). Like most other things, I'd like to be the on who teaches them about credit.
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