 TITLE: What Should Kids Use a Credit Card For? CONTENT: Teach Your Kids to Use Credit Cards Responsibly\n-----------------------------------------------\nShow your child how you check the account's activity on your phone or on the creditor's website. This will drive home the fact that there really are no secrets. When your child uses the card, it's there in black and white.\nAlso crucial: Make sure your child keeps the credit card safe. It should never be used by a friend or left where it could be stolen. If it does disappear, your child must notify you immediately.\nEmphasize the importance of tracking spending and ensuring you can pay off the balance each month. You may expect your child to repay you for some or all of their charges, so be clear about it from the beginning. The money might have to come from an allowance, savings, financial gifts or a job. As the credit card owner, you will collect what's due and deal with the debt, so it is crucial that you follow through on this task.\nRemember, you are demonstrating responsibility. If you allow your child to rack up charges that you end up paying, you're teaching poor money and credit habits. On the other hand, if you are strict about this process, you are showing the seriousness of the situation. Everything borrowed must be repaid, on time and in full. If not, there may be consequences that you can impose, such as:\n*   Extra chores\n*   Added fees\n*   Removing the card temporarily\n*   Revoking the card permanently if it happens more than once\nIf you're uneasy about letting your child piggyback on your credit card, a prepaid card may be preferable. These are debit cards that can be filled with funds, and since they are usually connected to such payment networks as Visa, Mastercard and American Express, your child is free to use the card anywhere the network is accepted (if you give permission). With each use, the balance declines. When the card is empty, it can't be used again until more money is added. Since no borrowing is involved, debt is not possible. Risk is minimized, though debit cards won't help your child create a credit history. Consider them credit card training wheels. END