Parents should not give their children the freedom to access credit cards carelessly. Parents must ensure that their child’s age is old enough to use a credit card. In addition, parents are required to provide assistance and understanding of the benefits of credit cards and the dangers of using them carelessly.
On the other hand, actually giving children the opportunity to manage credit cards has a positive impact as well. This credit card can be a learning tool to educate children to be better at managing their finances. Other benefits, let’s look at 4 benefits of giving children the confidence to use the following credit cards:
Teach Children How to Manage Finances
Introducing and providing credit card facilities is one of the best ways to teach children how to manage finances carefully. Look at the extent to which the child’s ability to learn to manage income, expenses, and debt.
Parents can set limits that can be used by their children so that children can learn to be responsible for their finances. Perform regular checks on the use of child credit cards every month to prevent misuse of credit card facilities. This can be a provision in the future of children, so they can manage their personal finances well.
Instilling a Sense of Responsibility
Giving trust to children to use credit cards means that they have trained and instilled a sense of responsibility for children to manage their own finances.
Parents must still see and monitor how children carry out the trust that has been given to him. Assistance from parents is needed because children are still very vulnerable to be tempted to try something new. So teach them the responsibility of using their credit cards intelligently and wisely.
Learn to Control Yourself
As explained above, young people are very susceptible to temptation, whether they come from social media, electronic media, advertisements, sales promos or social partners. This means that children must learn to control themselves so as not to be tempted to try something new or buy new things that are not really needed.
Give them an understanding that credit cards are not parents’ money, but debt to banks that must be paid, so the more often the credit card is used, the amount of the debt bills will also increase.
Learn to have a good track record
Children will surely grow up and maybe they will have their own credit card. Before having their own credit card, teach them to be good customers by learning to build a good credit track record.
Basically a credit card is a debt to the bank, but giving a credit card to a child will provide its own benefits if used properly. The positive side they will understand better how to use credit cards more wisely, do not just look at it from the negative side only.
General Benefits of Credit Cards in General
As a parent, you should be clear about what features and facilities are included on the credit card used to explain to their children. Here are some of the benefits of a credit card that you must know:
a) Balance Transfer Facility
The facilities offered by this particular bank can be taken into consideration, especially those with old credit card bills. The use of this feature is done by moving the bill from the old credit card to the new credit card (80% of the total bill) and then the bill will be paid off on the new credit card. This is done because of the consideration of smaller interest or more favorable installment facilities, so there is no need to use an old credit card.
b) Cash Withdrawal Facility
This facility is given to all credit cards. However, you should carefully consider the decision to make cash withdrawals via credit card, because cash withdrawal transactions will incur no small amount of fees plus daily interest calculated from the time of the cash withdrawal transaction.
c) 0% Installment Facility
This facility is quite tempting for credit card users. The customer will be given the convenience of paying the installment bills without interest for a certain period. But you should always be careful using a credit card, do not let features that should ease the burden will actually become an unpaid debt burden in the future.
d) Reward Points
In general rewards or bonuses given by issuing banks are in the form of points and cash back that can be obtained from purchases using a credit card. This facility will be very beneficial because by actively using it, you can save money at the same time. For points earned, it can be exchanged for a variety of interesting items offered through a monthly catalog that is sent with the bill.
e) Transactions in Foreign Currencies
This feature makes it easy for you to conduct financial transactions or purchases in foreign currencies, especially for those who like to travel abroad. For credit cardholders who have a foreign currency transaction feature, you will be given the convenience of spending using a foreign exchange rate, because the bill will be billed in the dollar.