Once a teenager turns 18, they can have their own credit card without their parents' permission or knowledge. Parents can't assume that their children know about interest rates and the cost of credit. That's why it's important for parents to talk to their children about how credit is a convenience, not a license to spend money they don't have. Parents with teenagers approaching 18 years old may want to consider opening a joint credit card account to give their kids some experience with plastic. Set limits .
Parents often struggle with how much money to spend on brand-name items for their children.
One way to compromise is for parents to set a reasonable limit on what they'll pay for each clothing item and require kids to pay the difference if they want something more expensive. This teaches children the value of money and the benefits of shopping for less expensive alternatives. Another option is to allow children to buy one brand-name outfit, preferably on sale, and require less expensive purchases for remaining items. Lutheran Brotherhood 625 Fourth Ave.