| Plastic has in many ways taken the place of hard | | | | and the rule of thumb must be "live within your means." |
| cash. While credit cards protect you to some extent | | | | 4. Know the importance of wise spending and that he |
| from pickpockets and such and have advantages, it is | | | | or she cannot lean on parents and expect then to |
| important for children to learn early the subtle nuances | | | | constantly bail him or her out of a situation. 5. Create |
| of credit cards. Early education on the handling of | | | | an expenditure budget for every month and learn how |
| money and the knowledge that credit cards are to be | | | | to balance money spent with money available. 6. Only |
| used wisely will help ensure that the kids don't go into | | | | use a card in emergencies and purchase only what |
| credit card debt or tread the path to financial ruin. | | | | can be purchased in cash. Overspending is a definite |
| According to experts always introduce the world of | | | | "NO" and one must learn to do without. 7. Learn the |
| credit cards to a child when he or she turns 18, give | | | | importance of saving and the habit must become |
| them a card with low credit. Begin the learning | | | | ingrained. Kids must be encouraged to set aside |
| experience when the child lives with you and not when | | | | 10-25% of their allowance or earnings each month and |
| beginning college and staying away from home. | | | | learn when and how the money must be used. 8. |
| Inculcate the importance of being independent and | | | | Know as much as possible about how credit cards |
| responsible enough to manage money. If kids learn at | | | | function and all about late payments, interest accrued, |
| an early age the need to establish and build credit they | | | | reward points, and billing cycles. Statistics reveal that |
| will never face any strife and will be able to be | | | | only 13% of students use a credit card sensibly and |
| responsible adults. In order to use the first credit card | | | | that too for emergencies. Over 79% of students are |
| wisely a student must: 1. Acknowledge that the card is | | | | irresponsible and need to be taught the importance of |
| for use in emergencies and not an extension of | | | | using a card wisely. It is important to inculcate from a |
| spending money. It is important for a student to realize | | | | young age that money power is to be wielded wisely. |
| that the card must only be used to the extent that he | | | | Although schools have programs in place about |
| or she can settle the bill in full at the end of the month. | | | | handling finance it is up to parents to not just teach the |
| It is crucial for a child to live within his or her means. 2. | | | | children but to keep an eye on whether the child is |
| Learn the role played by credit reports and scores in | | | | straying from the right path where money is |
| life and begin to build a good report from day 1. A solid | | | | concerned. It is important for teens to stray clear of |
| payment history will enable the student to set the | | | | the buy know pay later attitude. Debt is a monster and |
| foundation for a good credit score. 3. Realize that a | | | | no child should begin life in debt or seek bankruptcy |
| card is not available to pay for purchases that cannot | | | | protection. Financial responsibility is an early lesson that |
| be paid in cash or to pay for tuition and living | | | | must be taught and understood well. |
| expenses. Money must be used in a budgeted way | | | | |