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Top Reasons for Your Child to have Credit Card

Updated: 4 days ago

With digitalisation booming, it is imperative to shift our focus from hard cash to digital and plastic money. Credit cards, for example, are one of the most secure ways of payment. It is easy to handle, does not invite dangers of theft or robbery, and is easily accessible.




Here are 5 reasons how credit cards are the most secure way to pay

  • They are not directly linked to your money. This means, if you lose your wallet, you do not have to worry about someone instantly draining out your bank account.

  • You have limited to zero liability for fraudulent charges if you report them on time.

  • Your card issuers send you alerts if they notice any suspicious transactions, saving you from fraud.

  • Dispute processes are more convenient with a credit card. When you dispute a credit card transaction, whether it is fraudulent or you have a problem with the product or services, your card issuer freezes the payment. This means you do not have to pay for that transaction until the dispute is over.

  • The new chip technology makes it harder for hackers/frauds to steal your credit card data, making the payment process more secure.

  • It keeps your finances safe. Carrying a wad of cash is highly risky; however, taking a credit card everywhere you go makes things simpler.


Nevertheless, as parents, we always think if we should let our children use our credit cards or just get them one of their own. It is always a good decision to get a new credit card for your child, instead of lending yours to them, because for the following reasons –




  • Since your credit card has a higher limit, it is better to get your child a credit card that has a lower swipe limit. This helps in avoiding the risk of heavy transactions if the card is stolen or lost.

  • Getting your child their own card will give them a sense of independence. Most influential people give their kids credit cards so as to teach kids about responsibility towards money and expenses. They will have the responsibility of managing their expenditure and keeping the card safe all by themselves.

  • Credit cards teach children the importance and value of money management. When the child has a card with a set limit, they ensure that they spend wisely in order to not go over limits. It teaches them how to manage money and how important it is.

  • It prepares them for adulthood. If your child knows how to use a credit card properly from a young age, it helps them as they grow. Since most payments are now going digital, it is vital for everybody to know its functionality. Handing them their credit card helps them know all about using cards the right way. Parents can teach teenagers about the consequences of overspending by giving them credit cards and so that they don't make the same mistake in future.

  • It helps them build a strong credit score from the very beginning. When you get a card for your child and make timely payments, it helps their credit score rise. This means, even when they are in their late twenties, the oldest account on their credit report would be more than a decade old.


The points mentioned above are the reasons why it is important for you to get your child a credit card of their own, instead of giving yours to them. This way, you do not have to worry about your card all the time, and also help your child manage their finances on their own.


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