Let’s stop our commentary on the non-stop laugh riot that is the great stock market melt down of 2011, (not to be confused with the 2008 meltdown) and turn ourselves to another fun topic (suggested by Mrs. C8j).
Students and Credit Cards
In the September Canadian Living in the Budgeting for Back to School section the expert told some naive parent that it would be a great idea for their child (who is 17 years old) to have a credit card, and I quote:
“… and have him set up pre-authorized payments that cover the minimum monthly balance.
The expert is actually a VP at TD, and in fact the response given isn’t completely full of “horse dung”, but I disagree with the primary premise that the child should be allowed to have a credit card (a 17 year old is a child), I just think it is a dangerous concept to introduce to someone that age. The expert does espouse that if you give the child a credit card they should pay it off every month and “… treat it like a charge card…”, but then the assanine comment above was made and she lost me completely.
The last concept you want to teach a 17 year old (or even a 40 year old) is that they should carry debt on their credit card, and that if they make minimum payments that it is a sound financial concept. Shame on you Expert, that is handing a child a financial hand grenade with the pin removed!
There was then some odd comments about building up a child’s credit rating as well, which is kind of creepy (financially at least) in my opinion.
Am I completely off-base on this one?