Credit cards vs cash

amother

Mon, Jun 24 2019, 1:26 pm

I’m getting to the point where my older kids can bike or walk to run errands for me (either for household items or purchase for themselves I pay for)- and they still want to!!!
I give them cash for purchases.
DH was thinking we should get them a credit card for this purpose because having cash on hand all the time is complicated.
I was thinking that going with cash means you have to make sure you have enough and you see it get less - not that money is unlimited - even if parents money and not your own.
They are young teens.
I’m curious how others worked with their kids understanding of money vs credit cards and spending.

(DH and I bH use cc wisely and have no debt so for us giving them cards is not an issue)

Rappel

Mon, Jun 24 2019, 1:42 pm

I think you're right. We grew up with only cash, and we're all very aware of dollars and cents.

I have close friends whom always had daddy's credit card - no concept of financial responsibility.

amother

Wheat

Mon, Jun 24 2019, 1:45 pm

The best thing you can do for them is help the budget and build credit while they are young. I learned this the hard way when it came time for me to buy a house and I never owned a cc! You can contol cc much better than cash by looking online to see your statement and tracking their purchases. Make sure to constantly follow up and ask them what charges were etc so they dont think itll be a free for all.

amother

Copper

Mon, Jun 24 2019, 3:05 pm

amother [ Wheat ] wrote:

I do this. When I was growing up my parents made us submit receipts when we used their card so they could see what was bought. I just ask my kids if it's not obvious - ie: $6 charge at pizza store, $10 at the drugstore.
When I see a large Google Play charge, for example, I ask what game they just bought or whatever and DH and I decide if they have to reimburse us.

Rutabaga

Mon, Jun 24 2019, 3:09 pm

If you give them a credit card then make sure they always get a receipt and give it to you for accounting purposes. Make sure they know it's because you want to make sure there are no errors on the part of the store or bank, not because you don't trust them. But also make sure they know when they're allowed to use the credit card and when they're responsible to pay for things on their own. You should probably also have a rule about asking permission before they put charges on the cc with the intention to pay you back if they don't have the money at the time.

amother

Coffee

Mon, Jun 24 2019, 5:26 pm

My kids have had credit cards from elementary school. BH they have nice credit built up now they are older teens. I get a notification when the kids charge anything over $1.00.

I let them charge items for me also to build their credit like grocery shopping.

amother

Blue

Mon, Jun 24 2019, 5:30 pm

amother [ Wheat ] wrote:

I don't think people should have credit cards unless they are responsible to pay the bill from their own pocket.

Time to get one when there is income.

amother

Coffee

Mon, Jun 24 2019, 6:10 pm

amother [ Blue ] wrote:

I don't think people should have credit cards unless they are responsible to pay the bill from their own pocket.

Time to get one when there is income.

In this day and age, they need credit for a number of things including cheaper car insurance rates.

aliavi

Mon, Jun 24 2019, 8:46 pm

We give secured credit cards for purchases that the DC wants to make. There is a monthly budget and it’s up to the DC to track it. Any extra $ is available for the next month. At any point the card can be blocked for misuse or over spending. Some charges aren’t part of a DCs budget like a haircut or travel to yeshiva.

For household or medical I give a debit card that I keep in my wallet and it’s returned. The account doesn’t have so much in it and the card can also be blocked if needed. Receipts are always given to me.