Plastic money is for emergency purposes and should be used with care.
But there are some parents who hand over credit cards to their children. Do you think it is wise?
In today’s global consumer economy, both children and young people are making use of plastic cards or credit cards.
You need to ponder is it safe to give your kids with a credit card. Credit card usage has both positive and negative aspects for your little ones.
Benefits of Credit Cards:
Oneworldnews list some important benefits of giving credit card in your child’s wallet.
Learn managing and handling money:
With credit card in hand at an early age, children learn to use money effectively. You should explain them the importance of money and its proper use.
Children become more responsible:
By giving plastic money to their children, you can help them become responsible and accountable for their expenses. It inculcates a sense of responsibility and they spend money with a tight hand.
Behave like adults:
Credit card is an effective tool to teach children how to make transactions carefully.
Check your kid transactions
Credit cards will help you keep a check on your child’s transactions.
Adverse Effects of Credit Cards:
Besides the benefits, the credit cards have some adverse effects associated too:
Kids make unreasonable purchases:
With handy money kids usually make irrational purchases and waste your hard earned money.
Involves enormous risk:
Wrong use of credit cards can lead to huge financial loses. Your kids can be misled by others.
Subjected to fraud:
Credit card accessibility can make your kids vulnerable to frauds and mischief mongers. They can indulge in online shopping and can fall prey to frauds.
The above mentioned pros and cons of credit cards will help you analyze the effects of giving plastic money to young kids and decide wisely.