Building Credit & Money Habits Early
Having a credit card for kids may assist them by developing healthy money habits from an early age, allowing these financial literacy skills to compound from the start.
Kids can learn about money management through several means, though the best option is through modeled behavior. In other words, seeing you handle credit cards responsibly as an adult.
Instead of credit cards for kids, start them off with debit cards for kids and teens that withdraw money directly from the prepaid card balance or from the associated bank account.
A child will become familiar with the responsibility of carrying a card and not purchasing more than they can afford.
Why Credit Cards for Kids Might Not Be the Best Option
Instead, you might consider getting the best of both worlds by instead getting them a kids debit card and then also adding them as an authorized user to your own credit card.
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