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Should teens have credit cards?
"Cash or charge?" ask the cashiers. "Charge," reply millions of Americans. The great majority of families in this nation hold at least one credit card. Credit card holders charge more than $500 billion a year.
Many young people share the credit card habit with their elders. A person under 18 cannot legally obtain a credit card by himself or herself. An older person must co-sign for the card or make a joint application with the younger one. In other words, an adult must take final responsibility for paying the bills.
But that restriction hasn't stopped a growing number of the young from getting a card. A nationwide survey showed that, by early 1993:
* 32 percent of high school students had a credit card;
* 82 percent of college students had a card.
Having a credit card can be a good learning experience for teens, according to some people. They say that using the card teaches teens how to plan their spending. Anyone who overspends on a credit card quickly learns his or her mistake at the end of the month. Besides, it is often more convenient and safe to carry a credit card than to carry cash.
But others warn that the trend toward more teenager credit cards is harmful. They say it teaches teens to spend rather than save. It is better to operate on a "pay-as-you-go" basis than use credit, these critics claim. Spending too much--a mistake easily made--an run up debts that it takes months or years to pay and may even lead to a bad credit rating.
What do you think? Should teens have credit cards?
COPYRIGHT 1995 Weekly Reader Corp.
COPYRIGHT 2004 Gale Group
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