 TITLE: What Should Kids Use a Credit Card For? CONTENT: When Your Child Should Use Their Credit Card\n--------------------------------------------\nStart by explaining that a credit card is a payment tool, and each time they use it they are borrowing money from the credit card issuer. Because you're the owner, you will get the bill. If you pay for everything that was charged in that billing cycle by the due date, it won't cost anything more than the purchase price. But if you pay partially, interest will be added to the remaining balance. Discuss the danger of carried-over debt and how it can quickly—and expensively—grow.\nAfter that, set the rules for what your child may charge. Some common charges parents allow—usually with limits—include:\n*   tutoring and coaching services\n*   a small indulgence a week or month\n*   clothes and accessories\n*   academic and hobby supplies\n*   food and beverages outside of school\n*   movies, concerts and sporting events\n*   swimming pool and recreation center entry fees\n*   dance and prom tickets\n*   gas for the car\n*   pet care (if your child has assumed responsibility)\n*   electronic transactions (such as Venmo)\nIt can also be smart for a child who is frequently out and about to have a credit card as protection against emergencies. For example, you may want to add a car sharing app to your child's phone, but insist that they use it only when necessary. END