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Stretch Your Dollar: Should you trust your child with a credit card?

Stretch Your Dollar

They aren’t just for adults anymore. Turns out, more children now have credit cards! A new report finds more and more parents are trusting their children with plastic. We’re stretching your dollar with a look at this growing money move. 

How much credit do you give your child? Apparently a lot. 

8 percent of parents with kids under 18 say that at least one child has a credit card. That’s according to a new report released by creditcards.com.

21 percent of parents said their children used their credit cards without their permission at least once. Not surprisingly, the report also found the more a parent makes, the more likely a child is to have plastic. 

13 percent of parents who make more than 80,000 have a credit card carrying child. That’s compared with 5 percent of parents in the under 40,000 catgory. 

The survey found location may also play a role, with 13 percent of children with credit cards live in the Northeast, 8 percent live in the South, and 5 percent in the Midwest. 

As you know, underage children can’t apply for their own credit cards, but they can be added to their parents’ card accounts as authorized users. 

The downside – experts say they can make unauthorized purchases and ruin their parent’s credit. However, there are benefits to giving your child a credit card. Experts say it gives them a head start building their credit and learning how to manage their finances. 

Copyright 2019 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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