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Teaching financial responsibility: the smart case for giving your child a credit card

“Helping your child build their credit score is an invaluable gift."

Photo credit: Canva

Nearly everything is purchased online these days.

With their colorful designs, customizable parental controls, and growing popularity among peers, it’s no surprise that kid-focused debit and credit cards have become increasingly appealing to families with young ones. Gen Z and Gen Alpha live in a vastly different financial landscape from their parents, and now, digital payments have largely eclipsed cash transactions. From concert tickets to food delivery to school supplies, nearly everything is purchased online. So, how can parents prepare their children for this new digital frontier and financial world that they themselves have not even experienced?

Ask the average parent about giving a credit card to a child, and they'll dream up a nightmare scenario: spoiled kids making endless purchases, unchecked impulse buying, mounting debt, and the development of poor financial habits. However, for the first generation growing up in an almost entirely cashless society, it makes sense for them to understand the value of money and how it’s used sooner rather than later.

Money, tree, financial responsibility, independence, financial literacyThe goal is financial independence. Photo by micheile henderson on Unsplash


According to a 2019 CreditCards.com poll, six million American parents have at least one minor child with a credit card. Winnie Sun, co-founder and managing director of Sun Group Wealth Partners and member of the CNBC Financial Advisor Council, gave her three children credit cards before they entered kindergarten. While this might seem extreme, she believes these early financial practices helped her children develop healthy money habits. In her Op-Ed for CNBC, Sun notes that her own parents added her to their Visa Gold card when she was 13 years old.

"My mom specifically told me that it was for emergencies, or if I had permission beforehand to use it," Sun recalls. "She thought it was a way to help her daughter in case she needed money, but what she didn't know then was that it also helped me learn how to handle credit early in life.”

Credit card, finance, debit card, swipe, financial literacyEarly financial education is crucial. Giphy

Financial experts are increasingly convinced that young adolescents should be included in conversations about money, recognizing that early financial education is essential for navigating today's digital economy. But when’s the right time? Andrew Latham, a certified financial planner with SuperMoney, explains that parents should assess readiness based on specific criteria.

“Parents should consider their child’s ability to handle financial responsibilities, understanding of money management and the overall need for a card. If a child can budget their allowance and has consistent needs to make purchases independently, they may be ready for a card,” he explains.

And which option is better for kids: debit or credit? Well, there are distinct advantages and potential drawbacks associated with both, which parents should consider carefully.

Credit cards

The primary benefit of getting your child a credit card is building a credit history. Credit history length makes up about 15% of your FICO score and up to 20% of your VantageScore. A longer credit history shows that someone has managed their accounts responsibly over time, demonstrating reliable financial behavior. As a result, lenders and credit card companies are more likely to approve applications and offer better terms to those with an established, positive credit history. By adding your child as an authorized user on a credit card with consistent, on-time payments, you can help them build strong credit from an early age.

Child, strong, financial literacy, credit score, money You can help your child build strong credit. Photo by Ben White on Unsplash

“Helping your child build their credit score is an invaluable gift,” writes Jae Bratton for NerdWallet. “A good credit score may help them secure a job, get lower interest rates on loans and, when the time comes, a top-notch credit card of their own.”

However, there are risks. Children under 18 cannot legally have their own credit card; they can only be authorized users on a parent’s account. As the name suggests, authorized users are allowed to use the card, but aren’t responsible for paying the bill. Therefore, parents will ultimately be responsible for all charges made on the card. If your child makes an expensive purchase, it could potentially affect your own credit utilization ratio and even damage their credit score. Jessica Pelletier, Executive Director of FitMoney, a nonprofit that provides free financial literacy curricula for K-12 schools, advises parents to remind their children that “there are firm limits…in place for authorized users.”

Debit cards

On the other hand, debit cards offer a more flexible yet tangible way for children to understand how to manage spending money. For Matt Gromada, the head of youth, family and starter banking at JPMorgan Chase & Co., he believes that early debit card access is a crucial component to lifelong financial literacy.

“Having a debit card opens the door for important conversations and real-world scenarios about the basics of finance—from spending and saving to explaining interest and how it accrues. It also gives your child a sense of pride, independence, and freedom, providing an opportunity for real-life experiences and learning,” he says.

Breaking free, financial literacy, debt, money, money management Break free of financial debt. Giphy

With debit cards, kids are limited to the amount of money available in the account, so they can't overspend beyond what is in the account. There are even modern debit cards specifically designed for kids, such as Greenlight, which offers a range of features that make parents and children feel secure and in control. There is no minimum age requirement for users, and parents can restrict spending at certain stores, set up safety SOS alerts, receive real-time notifications, and turn the card on or off remotely. This is also an easy way to transfer allowances to your child.

According to BECU, a financial cooperative, “a debit card can help your child learn financial responsibility basics such as keeping a card in a safe, dependable location, staying within spending limits, using a card for purchases, checking on balances, and monitoring for fraud.”

Of course, the main drawback of debit cards is that they don’t help establish or build a credit history. So, what’s right for you and your family? Start a dialogue today and discuss the best option for your children.

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Doctor validates parents everywhere by explaining why our 8-year-olds are so moody

What is "Adrenarche" and why is it turning our kids into walking nightmares?

drcarmenbriner/Instagram & Canva Photos

A lot of parents have noticed kids that are "too young" for puberty are moody and emotional. A doctor explains.

As the father of a 9-year-old, let me try to put it gently: What in the absolute hell?! Somewhere along the way, our education and training as parents failed us. We knew having a baby would be hard due to a lack of sleep and all the crying. We know toddlers would leave us feeling touched out and exhausted from tantrums. We also know to brace ourselves for the emotional rollercoaster of puberty in the teen years. But...nobody told us about what happens at ages seven or eight.

A doctor on Instagram is raising eyebrows for teaching parents a hard truth: puberty starts much earlier than we've been told, and it's these behind-the-scenes changes in body chemistry that explain a lot.

inside out, puberty, teens, preteens, kids, children, parenting, parentsInside Out is a masterclass in the emotions of young kidsGiphy

Dr. Carmen Briner, a doctor specializing in hormones, puberty, and periods, took to her Instagram Reels to drop some knowledge.

"Wondering why your 7 or 8-year-old is suddenly so moody? Well, puberty starts before you might think, with the brain signaling the hypothalamus and pituitary glands to start secreting hormones, which happens before any visible physical changes of puberty start to take place," she says.

General knowledge tells us to expect a certain amount of teenage grumpiness when the body odor, growth spurts, and hair growth kicks in, but according to Briner, there's a secret "pre-puberty" phase called Adrenarche. This phase is when those puberty hormones surge behind the scenes, leading to "moodiness, irritability, or even sudden bursts of energy or excitement."

Most parents of a kid this age have seen it play out in real-time where a minor mistake or inconvenience leads to half an hour of hysterical tears. "These early hormonal shifts have a huge impact on their emotions, so you might notice new sensitivity or sudden mood swings or a newfound intensity in their feelings," Briner says.

Listen to her break down the science here:

Needless to say, frustrated parents of kids aged seven to ten are in the comments feeling incredibly seen. Boy and girl moms alike were relived to get an explanation for why parenting suddenly seemed so damn hard, right when it was "supposed" to be getting easier:

"All this plus acne for our 7 year old son. I wasn’t ready."

"My friend's 9yo is starting to act up and I told her it must be puberty starting. She said it's crazy, she's too small and she's just being petty on purpose. Thank you for this video, I might not be crazy after all"

"It’s been a nightmare since she was 8. She’s almost 12"

"My almost 8 year old girl has been a moody NIGHTMARE. Always nice to know its not my fault"

"So my 8 year old boy did not suddenly become possessed by a demon?"

"Save me" one tired mom joked.

peewee herman, help, kids, parenting, parents, moms, dads, pubertyParents of 7 and 8-year-olds desperately need help.Giphy

See? If your pre-puberty kid is, let's say, a handful, it's not just you. We're all going through this together, and it's not your fault. It's also not your child's fault. "They are not being difficult on purpose," Briner reminds us.

Experts say the best way to handle this volatile phase is to have empathetic but firm conversations when the heat of the moment has passed. There's no use hooting and hollering when your eight-year-old is in the middle of a hysterical meltdown. Just be there for them and support them as the feelings pass through. Then, when things are calm, discuss strategies for how you two can handle things better the next time around.

And don't worry—the mood swings won't last forever. They should settle down dramatically by the time your kid is 16 or so. Only eight more years—you've got this!

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Parenting

Yet another school district shifts to 4-day week and parents are sounding off

So... when are we getting the matching 4-day work week?

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When talking with other parents I know, it's hard not to sound like a grumpy old man when we get around to discussing school schedules. "Am I the only one who feels like kids have so many days off? I never got that many days off when I was a kid! And I had to go work in the coal mine after, too!" I know what I sound like, but I just can't help it.

In Georgia, where I live, we have a shorter summer break than some other parts of the country. But my kids have the entire week of Thanksgiving off, a week in September, two whole weeks at Christmas, a whole week off in February, and a weeklong spring break. They have asynchronous days (during which they complete assignments at home, which usually takes about 30 minutes) about once a month, and they have two or three half-day weeks throughout the year. Quite honestly, it feels like they're never in school for very long before they get another break, which makes it tough to get in a rhythm with work and career goals. Plus, we're constantly arranging day camps and other childcare options for all the time off. Actually, I just looked it up and I'm not losing my mind: American kids have fewer school days than most other major countries.

So it caught my attention in a major way when I read that Whitney Independent School District in Texas recently decided to enact a 4-day week heading into the 2025 school year. That makes it one of dozens of school districts in Texas to make the change and over 900 nationally.


Giphy

The thought of having the kids home from school EVERY Friday or Monday makes me want to break out in stress hives. But this 4-day school week movement isn't designed to give parents a headache. It's meant to lure teachers back to work.

Yes, teachers are leaving the profession in droves and young graduates don't seem eager to replace them. Why? The pay is bad, for starters, but that's just the beginning. Teachers are burnt out, undermined and criticized relentlessly, held hostage by standardized testing, and more. It can be a grueling, demoralizing, and thankless job. The love and passion they have for shaping the youth of tomorrow can only take you so far when you feel like you're constantly getting the short end of the stick.

School districts want to pay their teachers more, in theory, but their hands are often tied. So they're getting creative to recruit the next generation of teachers into their schools — starting with an extra day off for planning, catch-up, or family time every week.

Teachers in 4-day districts often love the new schedule. Kids love it (obviously). It's the parents who, as a whole, aren't super thrilled.

Photo by National Cancer Institute on Unsplash

So far, the data shows that the truncated schedule perk is working. In these districts, job applications for teachers are up, retirements are down, and teachers are reporting better mental well-being. That's great news!

But these positive developments may be coming at the price of the working parents in the communities. Most early adopters of the 4-day week have been rural communities with a high prevalence of stay-at-home parents. As the idea starts to take hold in other parts of the country, it's getting more pushback. Discussions on Reddit, Facebook, and other social media are overrun with debate on how this is all going to shake up. Some parents, to be fair, like the idea! If they stay-at-home or have a lot of flexibility, they see it as an opportunity for more family time. But many are feeling anxious. Here's what's got those parents worried:

The effect on students' achievement is still unclear.

The execution of the 4-day week varies from district to district. Some schools extend the length of each of the four days, making the total instructional time the same. That makes for a really long day, and some teachers say the students are tired and more unruly by the late afternoon. Some districts are just going with less instruction time overall, which has parents concerned that their kids might fall behind.

4-day school weeks put parents in a childcare bind.

Having two working parents is becoming more common and necessary with the high cost of living. I know, I know — "school isn't daycare!" But it is the safe, reliable, and educational place we send our kids while we need to work.

Families with money and resources may be able to enroll their kids in more academics, extracurriculars, sports, or childcare, but a lot of normal families won't be able to afford that cost. Some schools running a 4-day week offer a paid childcare option for the day off, but that's an added expense and for families with multiple kids in the school system, it's just not possible.

This will inevitably end with some kids getting way more screentime.

With most parents still working 5-day weeks, and the cost of extra activities or childcare too high, a lot of kids are going to end up sitting around on the couch with their iPad on those days off. I'm no expert, and I'm certainly not against screentime, but adding another several hours of it to a child's week seems less than ideal.

Of course there are other options other than paid childcare and iPads. There are play dates, there's getting help from family and friends. All of these options are an enormous amount of work to arrange for parents who are already at capacity.

Working 4 days is definitely a win for teachers that makes the job more appealing. But it doesn't address the systemic issues that are driving them to quit, retire early, or give up their dreams of teaching all together.

Giphy

A Commissioner of Education from Missouri calls truncated schedules a "band-aid solution with diminishing returns." Having an extra planning day won't stop teachers from getting scapegoated by politicians or held to impossible curriculum standards, it won't keep them from having to buy their own supplies or deal with ever-worsening student behavior.

Some teachers and other experts have suggested having a modified 5-day school week, where one of the days gets set aside as a teacher planning day while students are still on-site participating in clubs, music, art — you know, all the stuff that's been getting cut in recent years. Something like that could work in some places.

As a dad, I don't mind the idea of my busy kids having an extra day off to unwind, pursue hobbies, see friends, catch up on projects, or spend time as a family. And I'm also very much in favor of anything that takes pressure off of overworked teachers. But until we adopt a 4-day work week as the standard, the 4-day school week is always going to feel a little out of place.

This article originally appeared in February

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Gen X mom reenacts 'coming home from school in the 80s' and totally nails it

"This is why we're built different."

Photo credit: Canva

If you lived through an 80s childhood, this will send you back.

Generation X, made up of those born between 1965 and 1980, has many claims-to-fame in their younger years game. Gen X brought the world Prince and Kurt Cobain. We were The Goonies and The Breakfast Club.We took down the Berlin Wall while watching MTV.

But perhaps the most iconic thing about Gen X is our semi-feral childhoods of benign neglect. The standards of parenting and child rearing have shifted a lot in the past 40 to 50 years, as has the technological landscape that kids grow up in, so naturally, today's kids won't have the same childhoods previous generations had. But there's something particularly nostalgic about being a child of the 80s for those who lived it.

One mom nailed the experience with a video reenactment of what it was like to come home from school in the 80s. Elizabeth Stevens (@BennettPeach on YouTube) arrives at the front door in her backpack, then pulls out a house key on a string around her neck. (Ah, the "latchkey kid" era when children were expected to come home to an empty house and let themselves in.)

Then she goes into the kitchen in her Care Bears t-shirt and finds a handwritten note—in cursive, of course—on the back of an envelope. "Working late—make your own dinner, watch your brother and the dishes better be done when I get home from bowling. – Mom"

- YouTubewww.youtube.com

That's right. Mom wasn't just working late, she was also going bowling while her kids were home caring for themselves.

Then we see her washing the dishes despite barely being able to reach the faucet, even with a stool, and then her making a Gen X staple—the cinnamon-sugar and butter sandwich. On white bread, of course.

In just one minute, Stevens managed to capture the essence of so many Gen X memories, as commenters shared:

"The mom notes on an unopened bill is memories."

"Nailed it! The best thing about growing up in the '70s/'80's was being ALLOWED to grow up."

"Why this video made me almost cry?? How quiet it is inside the home. Lovely."

child doing dishes, 80s childhood, gen x childhoodKids did chores at home alone after school in the 80s. Photo credit: Canva

"Facts!!! No babysitter, go in the house, read the note, do the chores n not let anybody in!!!! I remember the homemade the 'cinnamon bun.'"

"70s and 80s … latch key kid here elementary, junior high and high school. we turned out self sufficient, independent and successful."

"Just so frickin on point!!! All of it from the clothes to the key on the necklace to the note. Even what you chose to do for a snack. Too good!!! The windbreaker that's memories. It's all coming back to me now lol thank you for this. You have brought a huge grin to both me and my inner child."

Ah, the 80s.Giphy

"I was met with a note everyday, too. On the back of an envelope, my daily chores would be listed. If I was in trouble, I would cry as soon as I saw the note....lolol Love you momma. How I wished I could have saved those notes! They were historical treasures."

Tons of people gushed over the nostalgia of remembering those "good old days" when they were given both freedom and responsibility, with many saying kids today have no idea. One thing that might surprise the younger generations was how young the theoretical kid in this video could have been. We're not talking about young teens here—kids as young as 5 or 6 could be latchkey kids, and kids any older than that were often given responsibility for looking after younger siblings. Even official babysitting jobs could start around age 11, or sometimes even younger.

Gen X kids had learned to take care of themselves early on, which has its pros and cons. The rose-colored glasses many Gen X adults view their childhoods through can sometimes cloud the parts that were not so great about growing up in the 70s and 80s. Sure, that benign neglect resulted in resilience and independence, but for some that came at the cost of parental relationships and a sense of safety and security. We have more knowledge now about things like mental health support, parent-child attachment, and healthy relationship dynamics, and some of that learning is reflected in shifting parenting practices.

As often happens, the pendulum may have swung too far from the absent parents of the 70s and 80s to the helicopter parents of the 90s and 2000s, of course, and the "right" approach (if there is one) probably lies somewhere in the middle. But it is still fun to look back on those iconic childhood experiences with joy and humor and appreciate that they helped us become who we are today.

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