Teens are getting credit through credit and debit cards more then ever before. Credit cards companies are making it easier for teenagers to get credit. Now more then ever teens are in debt because they do not understand the responsibility that comes with using a credit card. Credit cards are not a bad thing, but teens do not understand how to use them correctly so they do not slide into debt. Due to this issuing credit to teens has become a growing problem in the United States.
It is not very hard for a teenager to get a credit card these days. In order to get a credit card in their own name, teenagers must be eighteen years old and have an income. In 1996, according to U.S. News approximately one half of teens ages sixteen to nineteen have part-time jobs. They spend and influence their family to spend one hundred nine billion dollars for consumer purchases such as; clothes, health and beauty products, fast foods, videos, computers and computer software.
Those numbers have grown even higher today as the teen market continues to grows. Students are advertising targets for manufacturers and this is why it is important that teens understand how to use credit wisely before they get a credit card.
Before any teen gets a credit card they should learn how to manage their money. If they do not know how to manage money properly, they will not be able to manage paying off a credit card. Parents should teach their kids the basics on how credit cards work. Including how interest rates work and how they can double or triple the original price of an item. Also there are websites that teens can go to that teaches them about credit and how it works. They can...