Many teenagers are interested in getting a credit card, its a sign of maturity and responsibility. Numerous parents, on the other hand, do not think their teens would be able to handle that responsibility and that they need to learn money management skills. Being a teen is a hard age, they want to feel like an adult, and a credit card is a good back up for them if they don’t have cash,and a wonderful learning experience.
Some teens believe that having a credit card is not only a sign of trust and maturity, but that it can help them control their spending later in life. So,when they do get a credit card of their own, they have already had the experience and know how to limit themselves. A parent, who is not sure if their teen is ready for a credit card could oppose this with the fact that credit cards aren’t always dependable and you still pay the balance, even if you go over it, and that they can have debt if they go over their balance. Although this statement is true,according to a poll of teenagers; “82% of teen credit card users say they paid their bills in full every month and only 11% of teenagers carry these cards.”Which shows that a majority of teens are reliable and can control their spending.
A credit card can help a teenager understand the benefits of using them. It also shows the importance of saving their money and being responsible and help them comprehend other financial things they will need to understand in the future like auto loans and college financing. A parent, may think their teen is not yet reached the maturity level, and that credit cards are easy to manipulate and are better to use for emergencies. Parents may also think they need to have good money management habits. A parent can help their teen buil...
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...ve it, when monthly bill comes.
Although some parents aren’t comfortable with their teen having a credit card, it is a superb learning experience. If they don’t ever learn how to use one correctly, they could get one as an adult and get very bad debt, since they never learnt how to use a card with control. A card does have disadvantages like not being able to control spending, debt, and going over balance. But, those disadvantages can be erased with the correct management skills. The argument between teens and parents may go on forever, but despite the parents beliefs, having a card does have its perks.
Works Cited
"Advantages of Credit Cards." TheMint.org. N.p., n.d. Web. 10 Mar. 2014
"Many Teens Carrying Credit and Debit Cards." Msnbc.com. N.p., 14 Apr. 2005. Web. 10 Mar. 2014.
Weston, Liz. "Credit Card Smarts." MSNMoney. N.p., 25 Aug. 2012. Web. 10 Mar. 2014.
Etzioni explains that working jobs doesn’t teach teens good money habits. First of all, I don’t believe it is McDonald’s job to teach kids how to use their money. One of the biggest advantages to having money at that age is that they can completely mess up and it won’t affect them in a dangerous way. Having money to spend can teach kids to spend their money wisely. The first several times they see something they want they will buy and find out later when it goes on sale that they messed up. Also teens try to borrow money all the time to get what they want quick. Often times they will end up in debt, but lucky for them they’re young enough that their parents can bail them out. If they don’t have the chance to make these mistakes before they move away, the consequences could be much more
Most kids that have graduated high school have never been educated on the subject of personal finance, so they don’t know things like how to pay bills, or even how to do something as simple as applying for a job. According to a family friend of mine, Ron Hart; who happens to also be an award-wining author and TV/radio commentator, believes that students in high school don’t learn anything about how to get a job or get prepared financially. He states that, “ Students should prepare for a job. Maybe, instead of taking a fifth field trip to the Trail of Tears site, do one to learn about real jobs in an area they might want.” Hart believes that most basic high schools aren’t teaching students how to become financially stable for their future, which can cause major issues. He claims that “few schools teach about the value of hard work, ingenuity, gumption and entrepreneurship. Those lessons are as rare as Donald Trump bumper stickers in the faculty parking lot.” Hart also goes on to talk about how high school does not prepare you for life the same way college will. There are so many more lessons to learn there that people are missing out on. College is very important due to the fact that it will teach students more skills about finance and job seeking that most high schools don’t. In college, kids will learn how to save and budget their money, pay for their own expenses, and prioritize their needs verses their wants. Learning financial responsibility is also something that kids will carry with them throughout their jobs and their life. Having more freedom to understand the concepts of person finance will allow students to make mature decisions while easing their way into real world
Credit card debt is one of this nation’s leading internal problems. When credit was first introduced, and up until around the late 1970’s, the standards for getting a credit card were very high. The bar got lowered and lowered to where, eventually, an 18 year-old college student with almost no income and nothing to base a credit score on previously could obtain a credit card (much like myself). The national credit card debt for families residing in the United States alone is in the trillions (Maxed Out). The average American family has around $9,000 in debt, and pays around $1,3000 a year on interest payments (Maxed Out). Many people have the concern today that these interest rates and fees are skyrocketing; and many do not understand why. Most of these people have to try to avoid harassing collecting agents from different agencies, which takes an emotional and psychological toll on them. While a lot of the newly recognized “risky” people (those with a doubted ability to make sufficient payments) are actually older people who have been customers of certain companies for decades, the credit card companies are actually consciously targeting a different, much more vulnerable group of people: college students. James Scurlock produced a documentary called Maxed Out on this growing problem, in which Senator Jack Reed of (Democrat) of Rhode Island emphasizes the targeting of college students in the Consumer Credit Hearings of 2005
When it's all said and done they do not think twice of what might happen in the long run. Teenagers do not think about the their actions. Teens do not have enough experience like older and wiser people do. Teenagers brains are still forming and still growing to the maximum height of what it can be. Most teens might think they know what's best but they really don't, unlike older people do.
High school seniors need to be taught economic responsibility. Economic responsibility should not only be taught in the schools, but in the home as well. As we have discussed in prior chapters, some of the reason we are in the mess we find ourselves in is due to the overspending not only by individuals, but the government as well. Arthur MacEwan states, “U.S. consumers have a reliance on credit and fail to look beyond the present” (2012, p. 6) As a consumer the high school senior needs to be taught how to look beyond what they see. How are they going to pay for the credit they have taken out, if our country hits another recession and they are left without employment?
In the Spring of 1949, Alfred Bloomingdale, Frank McNamara, and Ralph Snyder came up with a new plan for a modern type of credit card. While out to lunch one day in New York, the President of the New York Credit Card Company Frank McNamara had forgotten his wallet at home (Evans 53) . He had a thriving business yet credit cards at the time were only given to selected people. The first modern credit cards was introduced by Diners Club Inc. because of this. The modern day credit card is a small, plastic, rectangle, more than three inches. There is an account number and a name that is embroidered on the front. The first credit card did not look much like what credit cards look today. They were made out of paper not plastic, and they weren’t cards they were a lot like a tiny booklet that had all the same information the modern day credit card has now(Weiss 38). The modern day credit card can carry up to a $200 line of credit meaning you can buy anything you want at that certain time and pay it back at a later date such as months or a year after that time. Some companies require you to pay the full amount of your charge on the card at once, but some allow you to pay in small amounts. In order to apply for a credit card you must be at least eighteen years of age and if you are not you must have an adult sign the paperwork to apply for one. Prior ...
increasingly dominating the purchases of many American consumers. The concept of the credit card dates back to the late 1800's, while the modern credit card took form in 1966. Since then credit card use has exploded (Woolsey par.1-2). Today, over half of the United States' population owns at least two credit cards. The United States should become a cashless society because the government would ultimately save money, there is more convenience for consumers, and money related crimes would decrease dramatically.
Parents may not feel comfortable enough with their own financial situation to discuss personal finance with their children (Williams, 2009). Additionally, the parents, or other influencers, may not have a full grasp of certain concepts of financial literacy. In an article by Carlin and Robinson (2010) it was noted that “many retirement-age adults lack the financial literacy to understand the basic features of their retirement plans.” Financial literacy through socialization and practice may not be enough for students; whether it be “disadvantaged” youths who often lack a high quality of life at home, or youths whose parents have stable jobs with retirement
Credit card debt, can be easy to get into, but yet can take years to get out of. Credit card usage has become an increasing occurence in the 21st century for any person above the age of seventeen. Carrying cash has become uncommon for the average man or woman and unlike cash where someone is limited to only what they have in their wallet, credit cards can have upwards to thousands of dollars on them. Granted, there are great things about owning a credit card. For example, in case of an emergency and there is not enough cash to cover the expense, a credit card can be a great back up plan. However, with all the positives there are negatives, the biggest one being, a person can wind up in debt. Thus, credit debt is an individual’s fault, derived
By offering consumers both a means to pay for goods and services and a source of credit to finance such purchases, credit cards have become the most widely used credit instrument in the United States. As a payment device, credit cards are a ready substitute for checks, cash, and debit cards for most types of purchases (Federal Reserve, 2013).
Many parents feel that their kids are not ready to be faced with such a stressful responsibility, so why should they have to experience this before they have to? Parents do not want their kids to be taught these courses too soon. The article entitled “Is It a Mistake to Try to Teach Financial Literacy in High School?” by Hank Coleman from Daily Finance states, “Classes in budgeting, credit cards, compound interest and other basic personal finance skills can help prepare our children for adulthood. The problem stems from overzealous mandates. Our children -- and far too often, our teachers -- [are not] in a position to handle more than a cursory examination of financial topics.” This article not only covers the idea that students may not be ready for this serious topic, but teachers may not be prepared to teach these topics for a younger audience. Although these are valid points, there is never an appropriate time to start incorporating financial education without some stress. Students need to be to be able to welcome financial responsibility after graduating. It is unattainable, however, to set a specific point in a student’s life where learning this topic will not cause some amount of stress. People who believe that teaching these topics at a younger age will cause unnecessary
Some of the arguments in the article say that the reason why people are in debt is because expenses are higher now than they were in the 1970 's. Another argument is that we are living in a materialistic place, especially in California and New York. Everybody wants to look good and have the best, so they use their credit card to make these expenses. Some arguments blame teens for using credit cards. Teens already use credit cards and spend money. Banks and financial institutions are also blamed for the rise in credit card debt because they lower monthly payments on credit cards. Others just think that Americans are comfortable with having credit card debts.
We do live in a bigger home than usual for people with my parent’s income together, but it was something they could afford at the time they bought it. My parents are great people and I love them so much, my mother just has bad credit so all of my loans right now are in my name. I see that I am incurring a debt and interest everyday because of school loans. But I do not have a credit card and that is something I know if I had, I would get in trouble with. I took personal finance in high school and that is when I learned the difference between a debit card and a credit card. That opened my eyes so much more in what financial maturity looks like. I was able to figure out how to write a check and keep up with a checkbook, I learned about how babies are expensive, and about debt. I have learned that like my mother if I have a credit card I am going to get in trouble. This why I only have a debit card and both of them are closed cards (I believe there might be another term for this). It is when I run out of money; I cannot overdraft my account and occur an extra debt over the amount owed. That is so my card will automatically decline when I run out of money. This is good so I don’t get myself into trouble, and so it shows me that I need watch my
Research shows that parents play an important role in a child’s social and monetary behaviour in society. For instance, Dr. David Koffman discussed in his “Do I Make Money or Does Money Make Me” lecture, that there is a negative relationship between the amount of information learned from parents and the credit use of this information. Moreover, according to the first week’s reading many parents are often hesitant on discussing any financial information with their children due to their children’s age, as they do not want to reveal any information on their income or debt. This causes children to have an inadequate learning experience about the meaning of money and its uses which is referred to as money pathology.
The introduction of the credit card first came around while the economy was booming in the early 1950’s. American consumers were in buy mode and the credit card was a genius idea to let people buy now and pay later. At first look this idea seemed great but what looks and sounds great does not always mean that it is going to be great overall. Over the years credit agencies have released thousands of credit cards with several questionable polices and high interest rates. “Any given American family in the present day possesses an average of eight credit cards with about 15,000 dollars of debt”(Canner 8). Many consumers have become addicted to wasteful cyclic consumption and living beyond their income due to the ownership of credit cards. The invention and continued implementation of credit cards into the American economic and social systems appears to be the cause of the struggling economy, the weakened U.S. dollar, the sky rocketing prices of gas and grocery store goods, the all-time highs of American debt, and social deprivation in some regions.