Explain the interest rate on a card and talk about the different types of cards available. Like any loan, paying only the minimum payment due can significantly increase the compounded interest charged. Encourage your teen to avoid submitting a late payment, which can result in late charges or a tarnished credit history. This money management tool enables parents to pre-pay a fixed amount of money on a card for controlled, safe shopping at more than 18 million Visa merchant locations worldwide. Because it's a prepaid card, the spending can't get out of hand.
Parents can co-sign for cards or have their children added to existing accounts.
However, be careful when sharing credit with your teen - any late charges and wild spending incurred by them can damage your credit report and result in financial liabilities.