Your 13-year-old has a CREDIT CARD???
Warning!!! Credit cards are NOT for everyone!
While I’m a huge proponent of credit cards for those that can strategically manage their finances, they are definitely NOT for everyone! For some people, credit cards can appear to be an unlimited resource. That is, until 30 days later when the balance comes due, and they are not able to pay it off. That is when their financial world begins to crumble. In reality, the temptation to charge beyond their means is far too great. If you are reading this, and you believe that you fall into that category, please close this page, (after you give me a like on Facebook, Instagram, and Twitter)!
Seriously, I feel very strongly that not everyone is able to have a credit card. Some have tried, spent way beyond their means, and gotten themselves in a lot of trouble. Just because some girl on the internet tells you the benefits of getting credit cards, please seek wise counsel and above all else, honor God with your finances.
Now, for our story, when I started diving deeply into the world of credit cards, I learned that you can add an authorized user, as young as 13, to your credit card. You may ask, “Why on earth would you add your 13-year-old to your credit card?” Answer: To establish credit in their name. Two of my children began establishing credit years ago, and the other two are just beginning to learn about the importance of achieving and maintaining their credit! My youngest is 13, and she has a credit card….in theory. She doesn’t carry a card around in her wallet – that could be a disaster! You see, I added her as an authorized user on one of my cards, and as long as I keep my credit score in order, hers will increase over time.
I also did this with my oldest son years ago. We had to take a trip to Australia, as he was the recipient of a really incredible award. However, I didn’t have a credit card without international usage fees. So I went to my local Bank of America and asked for a AAA Visa because, at the time, I didn’t know to research the best options. I didn’t know that I could be earning tons of points. I didn’t know that our flights to Australia could have cost a fraction of what we paid. Thank God for crowd funding and the precious souls that contributed to his fund. Precious friends and family allowed the two of us to fly half way around the world – which, if the truth is known, began our obsession with traveling and seeing the beautiful world that God created. I added my son to that AAA Visa, and now his credit score is through the roof! He is eligible to receive any credit card on the market, and he works very hard to save a lot of money. Having credit cards does not always equal frivolousness and excess. Credit cards are a critical stewardship opportunity of one’s money and assets.
Let’s Get to the Point!
Get your kids started on the road to great credit and use credit cards as a teaching opportunity. BUT there is a caveat. If your credit is not in order, do not – I repeat, do not add your children. The benefit of great credit goes far beyond points and miles, including reduced rates for mortgages and car loans. Adding them while they’re young means that, when they are old enough to purchase a car or a home, that they will receive the best rates available. And the best rates equate to dollars saved. Also, I do recommend that, as you learn to manage your credit cards wisely, that you encourage your 16-21 year-old children to work diligently on gaining excellent credit – they will be grateful in the end!