Talk to Your Teen About Credit Cards

By: RCB Bank | Category: Financial Services | Issue: October 2020

You may not feel comfortable getting your teen a credit card right now, but it is never too early to talk about the benefits and risks of having one. Help prepare them for their financial future, and start the conversation today.

Credit Cards Are Not Free Money

Credit cards are a line of credit. This means they are debt until the bill is paid. Read the fine print on your credit card bill with your teen. Explain how quickly interest and late fees add up, and the burdens of long-term debt. "Teens need to learn the risks of credit cards," cations RCB Bank Mortgage Originator Kenneth Wohl. "They need to learn how to be responsible and not overextend credit."

Learn How To Budget Expenses

"Before you discuss credit cards, teach your teens how to create a budget," says RCB Bank Wealth Advisor Cathy Sang. Talk about bills and monthly expenses and how you manage them. Better yet, create a budget with your teen using an average beginning career income. Determine how much can be spent on bills and extras, such as shopping or eating out. This will teach them how to plan for and manage their expenditures, so they don't overextend credit.

Credit Reports & Credit Scores Matter

Talk to your teen about credit reports and how they offer details on how people manage money. This is important for when they want to buy a car, for example. Explain how credit scores impact their ability to get lower loan and insurance rates. "Kids need to understand the importance of building a good credit history early," says Wealth Advisor Mary Wood. "Using a credit card wisely, by paying off the balance each month, can help improve their future credit score."

Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. RCB Bank, Member FDIC.


« All October 2020 Stories

RCB Bank Financially Fit

For more information, contact:


More about RCB Bank Financially Fit:

Top Stories

Owasso’s Oktoberfest Honors First Responders

Break out your lederhosen and dirndls – its Oktoberfest time!  Join Emersumnice Brewery for its inaugural Oktoberfest celebration to benefit first responders.…... Read more »

How to Prevent Dangerous Home Fires with Black Hat Cleaning Services

Get ready for cooler temperatures and a cozy home by first getting your chimney and dryer vent cleaned. ... Read more »

Okla-Haunted! Four of Oklahoma’s Most Haunted Places You Can Visit

Our great state has an extraordinary history, with many a tale to be told about the characters of bygone days.  Oklahoma is such a great place to live that some hav…... Read more »

The Word on Warranties

Suburban Chevrolet’s Parts and Service Department is located right off of Route 66 in Claremore.  They have been providing quality care for cars and trucks, w…... Read more »

Breast Cancer Awareness: Helpful Information and Resources

A busy wife and mother jumps into the shower one busy Monday morning to get ready to drop off the kids at school and rush off to work.  There are a million thi…... Read more »