| I believe that the appeal of the debit card, car-renting issues aside, is that is limits the "hot water" that someone can get into by going overboard with spending.
However, I believe that our kids will get solicited (and may accept) credit cards once they arrive in college or sometime soon thereafter. So I believe it is never too soon to inculcate good credit habits. We have tried to instill in S that a credit card should be used as a convenience and safety to avoid carrying lots of cash and only when the "money is in the bank" to pay for whatever is charged.
As I mentioned on another thread, what has worked for us is as follows:
S has had a card (additional card on our account) with his own name on it since about age 15. He has been allowed to use it so long as he forks over the cash$$ to us immediately upon each use. To me, that teaches him, better than a "talk" could, how responsible credit works. For those going off to college in August, I would say it's not too late to try a similar approach starting now.
Not sure when he'll have his own credit card account, but I am hoping - and think I've seen the evidence in his behavior so far - that this baby-step approach will create an individual who won't use credit to spend $$ he doesn't have. |