At present, most of the time may be spent using the internet. Various activities such as shopping and online gaming are very common and easy to do. In carrying out these activities, it will be even easier if you have a credit card to make payments. Not only online, offline shopping also feels so easy using a credit card. In fact this is not only experienced by you, but also by your baby.
Banks in Indonesia set age limit to have a credit card
Rules in Indonesia provide an age limit for people who are entitled to have a credit card, namely those who are at least 21 years old (single) or 17 years (married). Maybe legally, your child has entered the legal age to have a credit card. However, some parents also give freedom for their underage legal children to hold credit cards on behalf of parents, or there are also those who get cards through additional cards from parents.
You could be one of them, or you might still consider whether you need to give a student credit card to your teenage children or students. Most teenagers still have not reached a stable condition, and this is very likely to make you worry. Not to mention children who are immature tend to still not be able to control the use of their own credit cards. So, do you need to provide a credit card for a child?
Some of the advantages of giving a child a credit card are:
- No need to bother to equip money continuously with children
- Train and teach financial concepts early
- Safer because children do not need to carry large amounts of cash
Some of the disadvantages of giving a child a credit card are:
- Children can get used to being wasteful
- Less respect for money
- Can interfere with family finances if misused
There are several things you can do to avoid the disadvantages of giving credit cards to your baby. First, by giving a low credit card limit . In this way you can control the amount that your child can use. In addition, the expenditure of adolescents is also not too large in number. Before determining the limit, you need to calculate your child’s expenses in order to provide the appropriate credit card limit .
Educate your Child on credit card usage
You need to educate your child about the credit card they will use. Explain about the payment system, interest, and also other features of the credit card. Get used to always showing bills of credit cards that your child uses. In this way, you at the same time educate children to get to know financial products so they don’t use them in the future.
You can make an agreement with your child with penalties and gifts. If after a few months of use your child is never overlimated, you can give him an appreciation in the form of a gift. If there is an overlimit usage, you can give penalties such as cutting monthly allowances or confiscating a child’s credit card for a month. This method will help remind children that overlimit must be avoided and will train them to be wiser in using money.
Although giving credit cards to children can be worrying, it can provide children with valuable lessons and experiences. With good guidance, you can avoid unwanted things and give your child the opportunity to practice their responsibilities.