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Teens Should Learn To Use Credit Wiselyby Steve NewboldBLOOMINGTON -- Teaching a teenager about credit cards is part of the checklist of growing up as an American. Family Credit Counseling regional manager Jeff Telling of Normal said credit card companies love to nab young adults. "They are going to get exposed to those cards immediately after hitting college," Telling said. "When those cards are handed to them there's no teaching at all. The best way is for parents to show the kids through their own personal experience." How to teach them: Teens can use a credit card to establish credit. To make sure they don't abuse it and it's paid on time, Telling suggests a joint account, shared with a parent. He said the parent should strictly monitor what the child purchases and destroy the card after the first time the bill is not paid in full. Other ideas: Try a secured credit card. The card is only good for an amount of money, between $500 and $1000, which is deposited with a bank. The teen learns about paying credit card bills without the risk of going into serious debt. Or, try a debit card, in which money immediately is withdrawn from a checking or savings account. This method will get them used to using plastic and spending on a budget. What you should look for: Do not commit to a card until you've looked at all your options. Look for one with no annual fee, a low interest rate and a 20- to 30-day grace period. Stay away from cards that charge a processing fee or have low introductory rates that shoot up after a few months. Interest rates can be calculated on www.bankrate.com or www.cardweb.com. Last bit of advice: There is no easy way to teach a teenager about credit cards, but Telling said it is crucial they learn when they are young. Parents must monitor closely how their teen uses the credit card and above all stress paying the bill on time. Article Reprinted Courtesy of The Pantagraph 
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