'When I was 10 all we had was cash, and all I got to go to school was 5$, and I was balling compared to my friends that only got $2. But not my $5 looks like nothing since kids can get debit cards and even credit cards. So imagine being 10 and walking up to the McDonalds with an Amex black card, pretty cool right? Now in this video, we’re going to to talk about the best ways to get your kid a credit card to start using today. Btw around 18% of kids at the age of 8-14 have credit cards. So stick around to find out how to establish credit by age 8 and what credits to use. Now before I continue to you the best credit cards for kids. - You yourself as a parent or your parents if your kid watching this, need to have credit establish and has to be able to get a credit card. We’re going to go over some pros and cons and then get into the banks that allow it. Top credit cards for kids and teens Pros and Cons Pros 1. Some cards to have an age limit, so you can give birth and hand that baby a credit card right there to manage his cost no problem 2. This help build up their credit history: imagine being 18 having a credit history and being able to negotiate power over interest rate Hot Tip: make sure they report to the credit bureaus no all of them do 3. Teaching responsibility: when I was 12 I would sell bootleg DVDs to buy videos games and save does 5$ to buy more video games. But when I turned 18 and got my first credit card, I spent 3k and then got into a deep hole. (I didn’t even have credit, I ended up teaching her. And I only my credit because of student loans) Hot Tip: If you teach your kids two rules they should be good, never pay overtime for liabilities and what they buy, they should pay it at the end of the month 4. Emergencies: only use for emergencies Hot Tip: Terrible advice emergencies are usually very expenses and unexpected. It best to teach them how to make an emergency fund first, and if an emergency happened to them, they can handle it. ( my phone broke to my phone got lost) Cons 1. Bad habits: Imagine having a credit card and never learning how to use it. ( one thing is having it, but another is to learn how to use it) 2. Bad Credit Problems: If your mom signs you up and she has terrible habits like paying late and letting accounts get shot down, that could ruin everything. Hot Tip: But you can call in and ask for it to be removed because of your no official responsible for the debt. 3. Let\'s wish this doesn’t happen: But if your kid grabs the card and spends 90k on a brank new fortnite skin, then you’ll be responsible for it. ( teach because you give) Quick Plan of Execution Info: Teach them how it works Active Management: - Allowance so they can pay it back - Simple budget: expenses – allowance - Good habits like paying back every month - All while teaching them to invest, save, and earn Results: Give them a good reason to do Hot Tip: Start them out with a debit then graduated them to credit, I have full videos on the best debit cards for teens and kids - Tell them all the good and all the bad also Cards and restrictions American Express 13-15 depends on the card Barclays 13 BOA, Chase, Capital One, Citi, wells Fargo: No minimum Discover 15 U.S bank 16 ( if your card is not heard just call the number on the back) Final Thoughts: Live and you learn attitude on parents: bad parenting | Learn, and Live is the correct way ( imagine being 18 getting a card and going your entire life being in debt) ( now imagine being 10 and your parent teaching you all the tricks and tips) * PRO TIP* INFORMATION IS EVERYTHING Link: Experian: https://www.experian.com/blogs/ask-experian/when-should-my-child-get-a-credit-card/ Investopidia: https://www.investopedia.com/articles/pf/09/children-first-credit-card.asp Money: https://www.moneyunder30.com/parents-giving-kids-credit-cards
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