A teen may want a credit card as an easy way to spend money, but it’s not necessarily the right idea. You really have to consider if your teen is ready for this kind of responsibility.

On the plus side, if your teen is ready for the responsibility, there’s nothing like getting an early start. But you need to be certain of this, so that your teen’s credit score is not damaged early on.

So how do you decide?

Start out by talking about what it means to have a credit card and a credit score. You want to be sure they understand the long term implications of how they use their credit card, not just the short term fun.

Make sure they understand that debts must always be paid back in full. Somehow not everyone seems to understand this right away. You want your teen to understand that credit cards do not provide free money.

Talk to them about interest rates and how the numbers add up. Ideally you want your teen only spending that which can be paid off immediately, but you can expect that they will decide to carry a balance sometimes. If they understand what it will cost them, they may be somewhat discouraged from doing so too often.

If you don’t already have them on a budget, start them on one now, including how they use their credit card. You can have them prove their ability to stick to a budget before allowing your teen to get a credit card. A little practice is a very good thing.

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