Any children or teenagers today, are children who are exposed to online businesses. They have the need to transact online, for example buying online games , buying online books, clothes, sports equipment and so on. As a result they tried to persuade their parents, so they were given a credit card. In your opinion, is it wise for teenagers to hold a credit card?
Banks do not want to risk bad debt
According to regulations in Indonesia, people who are entitled to have a credit card are those who have a minimum age of 21 years (single) or 17 years (married). Legally it means that teenagers should not be allowed to hold a credit card, especially a major credit card. The consideration of this age limit is to avoid adolescents from wasteful habits, errors in managing finances and reducing bank risk. Banks do not want to risk bad debt (credit card bills that cannot be paid).
Managing Director of the most popular financial product comparison site in Indonesia, Jai Breckman, stated that adolescence is indeed an unstable age so there is a concern that it will be difficult to control its use.
“However, this cannot be a justification that teenagers must not hold credit cards at all. The most important thing is, what is the reason and how are parents’ preventive actions to control the use of credit cards by their teenagers, “Jai said through his written statement.
Considerations when Enabling Teenagers to Hold Credit Cards
The simplest way is, we start making a comparison list. What are the benefits of a teenager holds a credit card? And what are the disadvantages if teenagers hold credit cards?
Maybe you are including parents who have college children outside the city or abroad. Of course, they need a credit card, for sudden needs, right? If you have doubts about whether or not your teenager is holding a credit card, you may have to:
Providing Knowledge or Education How to Use a Credit Card
Parents need to notify the rules for using credit cards. The extent to which a credit card can be used by your teenager. Don’t let your teenagers get used to living extravagantly using credit cards. When someone has a credit card, there are many consequences that can arise. One of them is a sudden theft of a credit card or loss of a credit card. Now you also have to teach what should be done in the event of these conditions.
Limiting Credit Card Limit
Discuss with banks, to get a child’s credit card. Of course, you set the credit card limit, according to your ability. The bank can help you make a child’s card, which is of course with a lower limit. Adjust the limit of a child’s credit card, with their needs. Usually, college students use credit cards for emergency needs.
Making Main Rules: Stick and Carrot
The last way is to make the rules for how to use a credit card. Don’t let your child get used to living with a credit card. The following is a wrong example:
A child, said Roy studying in the city of Bandung. Roy was given monthly money of Rp. 4,000,000 and was held by a credit card with a limit of Rp. 3,000,000. Roy thinks that every month he can spend Rp. 7,000,000. So what happened at the beginning of the month Roy used monthly money, while at the end of the month Roy used a credit card.
You must have clear rules of the game, for example, if the limit is exhausted for consumptive needs, then the monthly money must be reduced. Or the monthly money will be reduced according to the credit card bill the previous month.
Teenagers Holding a Credit Card Actually Doesn’t Matter,
Actually it doesn’t really matter if a teenager holds a credit card. The most important thing is, these teens need to be given information and education on how to use credit cards. Make sure you as a parent have also told you the rules of the game when using a credit card.