Encourage your teen to avoid submitting a late payment, which can result in late charges or a tarnished credit history. Control Spending with Prepaid Cards Consider starting your teen out with a prepaid card. This money management tool enables parents to pre-pay a fixed amount of money on a card for controlled, safe shopping. Because it's a prepaid card, the spending can't get out of hand. When the time comes for a traditional credit card, sign up with a major credit card company whose services meet your teen's financial needs.
Parents can co-sign for cards or have their children added to existing accounts.
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