Sunday, April 6, 2014

CFO Services: When Should My Child Get A Credit Card?

By Robin Setser

What are some of the most ideal times for your children to become involved in the world of credit, you may wonder? You may not want them to become involved at all but the truth of the matter is that your son or daughter will, one day, have to be able to take care of financial matters on their own. This goes for credit, in particular, and you have to be able to introduce your children to credit early on. Here are a couple of pointers given by those who specialize in CFO services.

Those who are experts on CFO services may be able to tell you that the best time for your child to receive his or her own credit card would be in high school. It's important for them to know about finances early on, after all, and this is one such point that authorities like CFO Consulting Services can attest to. Ideally, you might want to get your child a credit card a couple of years before they leave for college. This will allow them a better understanding of how the card works and when to put it to use.

One of the reasons why I feel as though it is necessary for a child to have a credit card early on is because of how much easier it will be for them to build a credit score. They will be able to make payments on time and, as a result, improve their standings in the eyes of loan providers, if such an opportunity exists. It's clear that, without such a high score, it will be far more difficult to attain loans in the long term. The earlier that you set out to do this, the better off you will be.

As a parent, you have to be able to talk to your children about the card itself, which is another point that those who work with CFO services can tell you. You have to be able to talk to them in regards to debt and the consequences that could come from late payments, to name one example. In my experience, high school students seem to have the worst time saving and spending money. If you are a parent and you feel like putting a limit on the card is for the best, perhaps it is the case.

It's easy to see why there would be concern amongst parents of those who are just receiving their first credit cards. After all, credit is a pretty serious matter to become involved in and I do not think that anyone will be able to argue with such a sentiment. Yes, credit does allow a certain degree of freedom but it is the type of freedom that should not be taken for granted. It's important to keep this in mind, especially if you are the individual who has just been introduced to credit.

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