This post was created in partnership with American Express.
My daughter is a teenager and I only have a few more years before she leaves for college! There is so much I want to do with her and so many things I still need to teach her before she goes. A huge priority has been teaching her how to properly budget and creating responsible habits. She has helped me shop and look for the best prices and discounts. She has learned to save part of her money for college and part for fun. She has learned the difference between what she wants and what she needs. My daughter is a very fast learner and a very responsible young lady so I decided she was ready to learn about credit cards too. That’s why I’m excited to partner with American Express to help establish financially responsible habits as an Additional Card Member.
I look forward to sharing with you how adding Sierra as an Additional Card Member is helping me teach her about responsible spending habits.
Teaching Teens About Financial Responsibility.
I know when I went off to college, I was totally unprepared for that first day when there were booths set up giving out free shirts to anyone who filled out a credit card application. I knew what a credit card was and how it worked but I didn’t know anything about credit scores. I also didn’t have actual experience using a credit card . Plus, learning from hearing and learning from doing doesn’t always produce the same results. That is why I was so glad to be able to offer my daughter an Additional Card so she can become familiar with how credit cards actually work while she has me to help her. An American Express Additional Card is an important step in teaching her financial responsibility.
Handing Over an Additional Credit Card to your Teen.
Adding your teen as an Additional Card Member is a great tool but I had to have a big talk with my daughter before actually handing her Additional Card over. We checked out a book about managing money from the library and she read it and told me what she learned. I wanted her to understand she was getting the opportunity to practice her financial skills because I trust her and because I want her to learn more about finances. I wanted her to use this opportunity to learn more about credit, setting alerts and budgets, and the rewards that come with the card.
I used the opportunity to tell my daughter about credit scores and how they can effect important things later, like your interest rate when you buy a house. We also talked about how having a few credit cards and paying on time can build your credit. Bonus Tip: Adding a child who is 18 years old (or older) can help them begin to build their own credit.
Keeping Tabs on The Tab.
We talked about the importance of tracking your expenses and seeing how they add up. American Express makes it easy to keep tabs on what your child purchases on their Additional Card. You can set spending alerts and spending budget to help you and your teen keep track of your teen’s spending and give you peace of mind. I also love that charges for each American Express Additional Credit Card for teens are separated on your monthly statement for easy expense tracking. For added peace of mind, each Card has its own account number so if it’s lost or stolen, you only need to replace that Card.
Benefits of adding Teens as Additional Card Members.
I think that giving my daughter an Additional Card has made her realize she is old enough to begin learning more about finances and that I trust her to behave responsibly. It is a great tool for teaching her financial responsibility in a hands on way. I love being able to set budgets and alerts and still be able to give her the freedom to practice spending responsibly. I can see exactly how much she spends and what she spends it on and we can touch base on her spending so she can see how it adds up. It is also wonderfully freeing as I don’t have to worry about having cash on me to give her or about her ever being somewhere without the money she needs. Now she is always prepared for the unexpected. She loves knowing that I value, trust, and respect her enough to help her practice her financial skills. As an added bonus, we dig the extra cash back rewards from her Additional Card spending. Additional Cards can be an excellent tool for teaching teens to be financially responsible.
Do you remember your first experience with credit cards? Were there things you wish you had known? What will you be sure to teach your teens about credit cards before they leave the house? Learn more about how to add your teen to your account as an Additional Card Member here: https://amex.co/2M5sOaq