High School Student Credit Cards

Is a high school student credit card a good idea or not? Some seniors may have turned 18 but are they ready for credit card responsibilities? The answer is, like most things in life, some people will do well with it and some won't.

A high school student credit card carries a financial responsibility much like a mobile phone. If someone has been highly responsible with their phone and not put the parent into debt from it, they are a candidate for a card. If the opposite is true, and they ran the bill way up repeatedly, the credit card will probably be the same old story, unfortunately.

This editor's graduating senior needed a high school student credit card because of a trip to France that was sponsored by the school. The schoolteachers that were leading the group on the journey did not want the students to be carrying a lot of cash or traveler's checks. Each student went to the bank along with a parent and opened a checking account that came complete with a debit card. The account had both the parent name and the student name on it.

This way the teens all got their own high school student credit card that they were able to use while traveling.  It was much safer than carrying cash or traveler's checks. This editor was at home while my student traveled in France, and I added money to the account every other day so there was not a large amount of funds in there at any one day.

When a debit card is used as a high school student credit card, it limits the possible spending to the amount that is in the account. It can't put the young person into debt. When used responsibly, this card helps build a good financial record at the bank. Later when the student is 18 they can apply at the same bank for a regular credit card. The bank is much more likely to approve their application if they see a year of responsible use of the debit card and account. If the student has a job, their paycheck can go into this bank account, along with any allowance or financial gifts received, etc.  

In conclusion, getting a high school student credit card can be a positive or negative experience, depending on how it is used. If used wisely, it can teach a student responsibility and help them build a credit record. Each parent has to weigh the factors involved when making their decision. In my own experience it worked out well and my student handled things like a champ.