Right Age for First Credit Card

Never give your kids a credit card, not even those prepaid cards.  Cash is more real to a child or teen than swiping a card--they can see and know how much they have left.  Cash teaches your kids to live within their means.  Up until your kids have a steady job, give them a cash allowance that is appropriate for their age.  Tell them no more cash until next allowance day once the cash they have runs out.  Trust me this is much better than letting a teenager run amok with plastic.  Even an atm or debit card is an excuse for a kid to overspend.

• Maturity: He/She must be 16 - Before that I don't think kids can understand credit cards as money, I know some grownups who don't grasp the concept.
• With responsibilities comes privileges: He/She earns the money they can spend with the credit card. It is easier to spend your parents money then your hard earned money
• Rules: Set a limit to the expense - passed the limit = revoke the credit card for the time needed to put the expense inside the limit

Those are my rules, your can be different. The only important part is stick to them.

I would definitely start with one of those pre-paid one before giving them an actual credit card. I think that it might be a good way to teach children about money if instead of giving then a cash allowance, you set a bank account for them and give them a debit card - so they can either spend the money or save it for something big. I think you can start that at about 12-14 depend on the maturity of the child.

as they grow up, give them more money every week, but also expect them to pay for some of their expenses like bus \ train pass, lunch money, new cloths, phone bill (also a good way to teach them that talking for hours on the phone is not free) school books and so on. 

There is never a right age for a credit card they are life stealers! Teach your child how to save first then make sure they know how to use cash. You would be surprised at how many people can't count back change. Next show them how to budget a checkbook and not to overdraft their accounts.  Most of all if the money isn't in the account don't write the check and explain overdraft fees.  I do believe in having a bank debit card teach them how to use a ATM machine and how to check their balance and they understand not all their transactions might not be showing on the screen. Teach cash principles first it is to easy to get in over your head with a credit card face it they are rarely used for emergancies only.

I think children with credit cards is only asking for trouble if you can afford it then fine but now a days its hard to cover your own bills you basicly have to work your a** off with intrest and all now if we are carefull on spending imagine a child wow!!!! I say a prepaid card is fine and you just diposit the money they have earned,allowences,child support,christmas money from the family instead of gifts cause older children are so difficult to shop for and that way they know what they are spending and are more eagar to help around so that you can top off their pre paid card!!! They can use it like a regular cc just more carefully than carelessly and you wont worry about the bill at the end of the month!!!!

its good to start early in order to establish a good credit rating, you can make sure they don't overspend by setting limits on the card.