What do you do about Teens & Credit Cards?

[westjones]

OK, my DD(16) is now driving solo, and so I like to send her to the grocery store to pick up stuff.....but I am finding that I am not always get my change back . And it would be nice if she could put gas in the car, but she need a credit card at the pump.

So what do you guys do? I was thinking of letting her use our one card that we don't use much and just have her sign my name (if the groceries are under $25 you don't have to sign).

I wouldn't let her keep it, just give it to her when she runs to the store and take it back when she returns.

But I would love to hear what the rest of you are doing in this situation. This is our first week of her driving alone so still trying to figure it all out.
Thanks,
DJ

 

[dawson5]

I think you can ask for one in her name. Our neighbor has cards for both of her daughters that are old enough to drive. She just had to set guidelines, I guess they had issues with her buying strawberries all of the time.

 

[Lisa loves Pooh]

Not sure what I would do--but I borrow my husbands debit card often and just run it with the pin. But of course I am trustworthy.

You could always maybe have her own debit card issued on a separate account and then transfer money into it for these errands.

Issues can arise when the card doesn't work and they need to check ID.


But in the future, when I ran errands for my parents, I had to provide the receipt and the change. I enjoyed running errands, so I didn't abuse the privilege. (And if they were my ticket to using the car!)

 

[KathyTX]

We set up a separate checking account for our teen. DH and I have full access to his account and move money to it from our checking account, keeping a smallish balance for him to use for gas and small errands. We try to keep between $100 -$200 in his account.

He has a debit card for that account to use for pay-at-the-pump, grocery store, or other errands that we do discuss in advance. He's responsible for collecting his receipts and keeping up with his balance in a checkbook register.

Last month, he needed a new jacket. I had him check his balance so we knew what we were working with, talked with him about what a reasonable price was for the kind of jacket he wanted, and sent him to the mall on his own with some pricing guidelines (like "if you find what you like and it's under $60, buy it. If it's more, call me first.") It was nice to have him do the shopping and make his own choice, and for me not to have to be there.

It's convenient for him and for us, and gets him in the habit of keeping track of the account.

 

[Belle2667]

I think you can ask for one in her name. Our neighbor has cards for both of her daughters that are old enough to drive. She just had to set guidelines, I guess they had issues with her buying strawberries all of the time.

This is kinda what we did. We got an additional card for our account in DS name. He usually keep it and give it to him as needed.

Very convenient for stops at the store or anything else I need. No longer do I have to go with him shopping for shoes or whatever. Plus, if he goes any distance further than local driving, I give it to him for emergencies.

Very convenient and a great piece of mind.

 

[Starshine]

I noticed when I logged into my PayPal account the other day there was an ad about letting teenagers learn to manage money. Let me go see if it's still there...

It is! Here's the link: PayPal Student Accounts

If you have a PayPal account already, that seems like a really easy solution.

 

[PrincessKsMom]

Two things that jumped out of OP's post. You can't trust her to give you back your change, but you're willing to trust her with a credit card? Also, your gas stations don't accept cash?

 

[Christine]

I have a Prepaid Card (Visa Debit) through USAA. It is specifically for teens. I would put her gas money and allowance on this card. She could use it an most ATMs without a fee to get cash.

 

[KristaTX]

Last month, he needed a new jacket. I had him check his balance so we knew what we were working with, talked with him about what a reasonable price was for the kind of jacket he wanted, and sent him to the mall on his own with some pricing guidelines (like "if you find what you like and it's under $60, buy it. If it's more, call me first.") It was nice to have him do the shopping and make his own choice, and for me not to have to be there.

First the car. Now a debit card, balancing a checkbook, and shopping alone for clothes. The boy is finally maturing into all that height .

 

[sue1013]

When DS started driving we opened a student checking account that was linked to mine. It was very convenient I could transfer from my account to his and he had a debit card to use. He used that account through college again very easy for me to see if he needed money and transfer.

 

[LindaR]

Well, give her cash to pay for the gas and TELL her that you expect a receipt or the money will be taken out of her allowance (if she gets one). You are the parent, she is the child. TELL her you want a receipt!

You can easily make her an authorized user on a credit card. TELL her your rules (only purchase what is on the grocery list, or must call BEFORE checking out).

Rules and guidelines. Works.

 

[LindaR]

BTW, my daughter (now 20) started using my credit card when she was 10. I had major spinal surgery and she had to do all the grocery shopping for a few months. I told her my rules (the adult who drove her had no authority in this matter).

When she started driving, it was the same set of rules. Get gas, mom gets receipt or else the money will be taken out of her allowance/paycheck/account.

 

[Longsx3]

DD (13) use to have a prepaid card through USAA, someone got the number and we closed it in favor of a USAA Teen Checking account with a MC Debit card. However if you are thinking about gas purchases, you may want to have her prepay in the store vs. running the card at the pump...most gas stations now authorize for $75 or more at the pump so you would need to keep a decent balance.

 

[westjones]

OH it isn't that my DD isn't trustworthy....she is forgetful and disorganized. She is very trustworthy, but I am just trying to find a way to make all of this easier for all of us.

When we were at WDW, I gave her charging on her room card when she went with her cousin around the parks and she was SO worried a bout how much she charged that she ended up dehydrated because she didn't want to buy water! And I had to text her and tell her to go buy water!

So I don't think she will abuse it, I do worry she will lose it.

Anyway, thanks for all of the posts. I never thought about her being able to have one of our cards in her name, We have Disney Visa, I guess I can call and see about getting her one, and only giving it to her when we want her to have it.

I know a lot of teens have debit cards, but I worry about keeping track of the balance and going over by accident.

Huh.....I have to give this some thought. This is all new to us.

 

[N.Bailey]

I send both of my teens (17 and 18) off with our card all the time (debit card, NOT a credit card). So far, there has been no problem at all, even when they have to sign. I will say though that it's a HUGE trust thing. I've noticed we've filled my son's gas tank up on many occasions (both when we were aware and when we weren't).

Many years ago, my husband's cousin ran his parents credit cards to the hilt. They would have had to pursue criminal charges against their son if they didn't want to honor his debt.

I'm certainly not suggesting you'll find yourself in that situation, I'm just stating this to show that as long as you're willing to pay for the items, I really don't think anyone would care if your child were using your cards. The first time she uses it, be along with her so she sees how it works. She might be too afraid to try using it if you just hand to her and say, "here ya go, stop at the store."

 

[westjones]

OK......you guys have been great! Thanks! I just got off the phone about our Disney VISA and I am getting one added to my account in her name.

I like the idea of me keeping it and ONLY giving it to her when I want her to use it and she has to turn in receipts to me. That way I can keep track.

If it seems like there is a problem, I will take her off of the account, but for now, I want to give this a try. I can go on line daily and look at charges, that that helps.

Like I said, she is a good kid. She has never done anything to break my trust (except she is forgetful and a bit of an air head at times). She even asks before taking a quarter out of our change dish. So really the issue with her is forming a 'habit' of keeping track of the card and receipt.

Thanks again everyone!
Debra

 

[RitaE]

We messed around for a long time with the pre-paid cards,debit cards, and gas cards for my oldest child. Then my 2nd kid turned 16 and we were looking at the same issues.

I finally got tired of the hassle and fees of all that and just added them as authorized users on my Visa. I threatened them both with anesthesia free castration should they misuse them.

Seems to work.

 

[TI double GGER]

Check out the Visa Buxx card. I got that for my DD when she started driving to use for gas, felt it was safer and more convienent than running into the store to pay. When she went to college it was also used for her living expenses. I believe (it's been a few years!) it was prepaid, you could add money every month, but it was treated as a credit card at the register. She knew how much was there each month and was very careful to stay within budget. Since it was in her name it went towards her credit report which she understood from friends problems was a very important thing to keep clean!

 

[N.Bailey]

OK......you guys have been great! Thanks! I just got off the phone about our Disney VISA and I am getting one added to my account in her name.

I like the idea of me keeping it and ONLY giving it to her when I want her to use it and she has to turn in receipts to me. That way I can keep track.

If it seems like there is a problem, I will take her off of the account, but for now, I want to give this a try. I can go on line daily and look at charges, that that helps.

Like I said, she is a good kid. She has never done anything to break my trust (except she is forgetful and a bit of an air head at times). She even asks before taking a quarter out of our change dish. So really the issue with her is forming a 'habit' of keeping track of the card and receipt.

Thanks again everyone!
Debra

Really, I think you made a great decision. The benefits really outweigh the risk, IMO. It's SO nice when you can send them to the store when you need something and they're normally more than happy to go.

The next big event is them reaching 18 so when they need glue for their school project, they're able to go to the store and buy it themselves.

 

[MarkBarbieri]

Mine aren't that age yet, but I planned on getting them used to using credit cards in early high school. My thought is that I will have an opportunity coach, guide, and correct their usage while they are still at home rather than learn the ropes without someone nearby to guide them.