So parents, make sure you read all the terms, especially with co-signed cards. You'll probably be there for the children, but it's nice to know the rules beforehand. Otherwise they're paying a high premium for everyday purchases, running the risk of damaged credit and learning some bad credit habits at an early age. If a young person has a credit history and can qualify for a regular credit card, it may work out to be a better deal. Misused, it can add a stain on their credit records that will take years to erase.
Secured cards are another option for teens and students.
Banks commonly offers these products, cards where the card-holder puts money in the bank as security. That money guarantees the card issuer will be paid if the card-holder fails to pay the bills. The credit limit is determined by how much is secured in the bank as collateral. There are also cards available where parents can link a child's card to their accounts, or where they can keep refilling the teen's or student's accounts as they go along. It's a way to keep up with what's going on, limit spending but still provide the freedom and convenience of a card.