5 reasons why teens don’t need Credit Cards


Credit card companies and banks are targeting younger consumers due to their increasing purchasing power. Teenagers are of course is on their list. That said, is it wise to allow teenagers to have their own credit cards? Is it worth it? I don’t think so. Below are 5 reasons why teenagers should not be given credit cards.


1. Teenagers are usually unemployed

Teenagers are often unemployed as they are focused on getting their basic education. The simple fact that they don’t have their own source of income (apart from their allowance) makes them an unsuitable candidates for receiving a credit card. Many financial experts believe that teenagers should first complete their basic education before having a credit card. Some even argue that they should finish college before applying for a credit card.


2. Teenagers lack responsibility

Some parents believe that credit cards help teenagers to be financially responsible; but more often than not that very credit cards will make them more financially irresponsible. Teenagers are preoccupied with having fun, at whatever cost to them or their parents. Personal responsibilities are often ignored simply because they are not in their priority list.  Credits cards only give more freedom to teenagers in terms of behaving irresponsibly.


3. Teenagers only spend, they don’t budget

Teenagers rarely budget. How much they spend is only limited to the price of the thing they want to buy (and of course the credit limit). A credit card to them is like a license to shop at will. Teenagers who have a credit card implies that their parent needs to constantly monitor their credit card spending; however many parents fail to do so.


4. Teenagers face huge peer pressure

Peer pressure plays a big role in determining how a teenager behave, and spend. Keeping up with friends on the latest branded clothings or gadgets is a big part of a teenager’s social life. Giving them a credit card is just like adding fuel to fire. It won’t do anything except increase the feeling of being pressured (since they feel they can afford things now with the credit card in hand).


5. Teenagers lack financial maturity

Teenagers lack of maturity and understanding of a financial situation, thus are far less likely to succeed in maintaining a balance. As we all know even adults have a difficult time balancing their financial needs, let alone teenagers. Teenagers often fail or avoid organizing their finances. They are also unable to grasp the effect of their spending on their finance standing. Teenagers may regard themselves as being adults, but their lacking in maturity results in a failure to live up to adult standards.

Some maintain that credit cards help teenagers to be financially responsible, but many experts believe that teenagers don’t yet have the financial maturity to handle it responsibly. As such they should at least finish their education, have a job and be financially secure before applying for a credit card.




February 20, 2013 at 5:16 AM
i think teens shouldn't allow to use a credit card.
And i am doing an essay about that and that witting above helped me a lot.

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