Americans owe $854.2 billion in credit card debt, with the average household carrying a balance of $15,191 on their credit cards. As a parent, you don’t want your teen to contribute to that statistic. That’s why offering savvy credit management advice early on is especially important. Informed teens understand the risks associated with abusing their credit card, so be sure to cover the following five topics before you sign up for that card.
1. Communicate who will foot the bill
It’s tough to watch your child struggle to pay off debt, especially when you can cover their expenses. However, bailing them out will prevent them from learning how to spend wisely. The National Foundation for Credit Counseling advises you not to bail them out, but to take them to a credit counselor to encourage them to ask for help when they need it. By setting boundaries and pointing them to experts who can help, you enable them to independently find solutions that will get them out of debt. Continue reading