File this one under ‘Not Quite What I Expected’. Thanks to these credit unions, I was able to deliver a presentation on identity theft prevention, credit, and savings to 250 teens last week. It was a great presentation that resulted in tons of audience questions, and a surprising revelation.
One of the FAQs that always comes from teens is when they should get their first credit card. I explained that with the changes in the Credit Card Act, teens wouldn’t necessarily be able to obtain their own credit card when they turned 18 without meeting certain requirements. The age of credit card consent now appears to be 21.
Instead of reacting with frustration, as I’d imagined, the audience burst into… applause?
Indeed, they did. It appears that the teen audience I spoke to thinks credit cards are just one thing too many for students grappling with so much freedom at one time. As one student said, ‘I think it’s good to ease into the whole adult thing. Credit cards just add too much pressure’.
Whether they’re too much pressure, or teens are at a loss as to how to use these all-important financial building blocks, the good news is that credit unions are providing students with unbiased advice about how to wisely use credit cards. Whether they utilize it at age 18 or age 21, these teens now have the skills to make safe, sound credit choices.
Between 1994 and 2004 I worked for a government agency that investigates financial crime in Washington state. During that time I learned a lot of stuff about money. Like if someone cons you out of your hard earned bucks, they usually spend your money before they get caught. The criminal almost always gets busted, but the money is gone. Sometimes these crimes result in other, not-totally-awesome stuff. Stuff like identity theft, low credit scores, and piles of debt.