In today's increasingly digital world, teaching your teenager about responsible financial management is essential. Getting them their first credit card might seem daunting, but it's a fantastic way to help them learn about budgeting, credit score building, and financial discipline. In this article, we will discuss the best credit cards for 13-year-olds, ensuring they have a head start in personal finance journey as they enter the adult world.
Best Credit Cards For 13 Year Olds Table of Contents
Finding Age-Appropriate Credit Cards
It's important to note that most credit card companies require cardholders to be at least 18 years old. However, there are ways around this age requirement that still provide teenagers the opportunity to start building their credit history and learning fiscal responsibility. Here's how:
1. Prepaid Debit Cards
A prepaid debit card is an excellent option for teenagers, as it allows them to load the card with a predefined amount of money and use only this amount for purchases. These cards do not extend a line of credit and are considered a safe resource when it comes to teaching your teen about financial management.
2. Secured Credit Cards
Issued by some banks or credit unions, a secured credit card requires a security deposit made by the cardholder to serve as collateral. Depending on the card issuer, the credit line can be equal to the deposited amount or slightly above. Over time, prompt payments and responsible use of the card can help improve credit scores.
3. Authorized User on a Parent's Credit Card
This option allows parents to add their teenager as an authorized user on their existing credit card account. As an authorized user, the teenager has access to the card, but financial responsibility still lies with the primary cardholder (the parent). This is an excellent way for teenagers to practice using a credit card and access any rewards programs available to the primary cardholder.
Top Credit Cards for 13-Year-Olds
Here are some of the best credit cards for 13-year-olds:
1. FamZoo Prepaid Card
FamZoo is a popular choice for parents who prefer prepaid debit cards. It comes with parental controls and online financial education tools. Parents can monitor their teen's spending and set allowances, while teaching them about budgeting and saving.
2. Greenlight Mastercard
The Greenlight Mastercard is designed specifically for families, offering parental controls and real-time notifications about the child's spending. Not only does it help teach responsible spending habits, but it also lets parents set an interest rate to incentivize saving.
3. Discover it® Secured Credit Card
For those looking for a secured credit card, the Discover it® Secured Credit Card is a top choice. With no annual fee, responsible use of the card can result in an upgraded unsecured card after eight months of responsible card management.
Best Credit Cards For 13 Year Olds Example:
Sarah, a busy mother of two, wanted to teach her 13-year-old son, Jack, about financial responsibility. After researching her options, Sarah decided to get Jack the Greenlight Mastercard. This decision allowed her to monitor Jack's spending and receive real-time notifications on his purchases.
Jack was excited about the opportunity to learn about budgeting and saving. Sarah set an interest rate to incentivize Jack to save his allowance, and they worked together to set spending limits and track their goals using the card's mobile app.
Over time, Jack grew more responsible with his spending and gained a better understanding of budgeting and credit. Sarah was delighted with the progress and felt confident that this early experience with his own credit card would help Jack become a financially responsible adult.
Now that you know the best credit cards for 13-year-olds, take the next steps in exploring these options and finding the perfect fit for your teenager. Remember, starting them off on the right financial footing is an invaluable gift that will serve them well throughout their lives. Be sure to share this article with friends and family to spread the word about helping our young ones step into the world of personal finance. Don't forget to explore other guides and resources available on Flik Eco, where you can find tips on everything from banking and investing to mortgages and renting.
