May 27, 2008
COLUMBUS, Ga. (WXTX) - It seems swiping is the way to spend. And not just for working adults.
A new poll from Junior Achievement and Allstate reveals there's been a steady spike in the number of teens who use credit cards.
Of those polled, there was a 10% increase this year, followed by eight% in 2007.
What do teenagers buy the most?? It's not clothes or food, but like others feeling the pinch at the pump --- gas.
That's right, 70% of teens say they use a credit card to fill up.
Regardless of what they're buying, some experts say the bigger question is who's footing the bill?
And in many cases it's the parents. If the money's coming out of your pocket, there are some guidelines you can set for your teenager.
One expert says it starts with communication.
Investment broker and financial advisor Terry Barnhardt says that conversation should include information about basic budgeting and planning. "When do we start actually learning how to use money and what money's all about, basically, it's a parental thing, there's no courses in a school at all."
Plus, a childs credit card should have a low limit.
"Let's be realistic, some, most kids don't need a credit card if we're taking high school or even freshman or sophmore in college, 500 to a thousand-dollars," added Barnhardt.
And finally, have them keep all receipts.
Barnhardt's tip: "Keep an envelope in the truck or car or whatever, they're driving. But each and every time the bill comes in, they can absolutely compare them, so they can show them, here's what you bought on this day, this is real and this is it."