 TITLE: How to Teach Your Kids About Money and Credit CONTENT: Getting Your Kids Started With Credit Cards\n-------------------------------------------\nWhile a child can be added as an authorized user to a parent's credit card from a young age, depending on the issuer, that doesn't mean it's the right choice for your family. Perhaps you'll choose to restrict access to the card until the child is mature enough to understand the consequences of running up credit card debt, or have a rule that the card is only to be used in the case of emergency. Maybe you allow the child to buy something on the card once per month under the watch of a parent who can help give context to the purchase.\nBut once your child turns 18, they may be able to open a credit card of their own. They may, however, have to start with a secured credit card, which requires putting down a cash deposit that becomes the card's credit line. It's a smart option as an alternative to authorized-user status, and as an additional credit-building method. Secured cards often come with a low credit limit, which provides some built-in protection against pricey purchases, but can cause a headache if it leads to consistently high credit utilization. Also, not all credit card issuers report authorized-user activity to the credit bureaus. So if your credit card activity won't help your child build a credit report and score, consider a secured card instead.\nSetting your child up with his or her own credit card could be a good opportunity to put your budgeting and saving lessons into practice. Perhaps you'll decide that the child must pay for all their own purchases using their allowance or money from work, if they're old enough. That can help your child start the process of making sound spending decisions based on what they can afford, rather than what they feel pressured by peers or advertising to buy. END