Did you know 18% of parents with children age 8-14 give their child… a credit card!?
According to financial firm T. Rowe Price, that number has grown from 15% in 2015.
Moneyish reports a growing number of parents are adding their kids to their credit card as an authorized user, with rules and limits attached. Some reasons include:
- making it easier for kids to buy things when their parents aren’t around
- emergency funds
- building a kid’s credit
- teaching them financial responsiblity
T. Rowe Price data reveals the following:
- 13% of 8 – 9-year-olds have a credit card
- 18% of 10 – to 12-year-olds have a credit card
- 19% of 13 – to 14-year-olds have credit card.
Now, the question a parent must ask: “is my child ready to handle the responsibility of a credit card?”
CreditCards.com senior industry analyst Matt Shulz says it comes down to a child’s maturity and responsibility level versus just age.
Parents must be prepared to initiate rules of usage and enforce them to avoid problems.
Learn more about what to give thought to before giving a child a credit card, HERE.