15 Year old AU

[IamB2]

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@wacdenney wrote:

I'm not worried about him running up a bill since I can set limits.  My main concern is that it will help him too much and give him enough rope to hang himself with one day.  I just want to help him and make it something importnant that we discuss with him.  My parents didn't do that with me and I screwed my credit up.  It's more about the importance of credit and helping him with that than it is about an allowance.

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I think this is a good thing. It is better to establish good habits early while YOU have the control with spending rather than when he gets his very own credit card. As long as any charges are "deducted" from his allowance, then we are in the right track. This establishes "spend only what you can afford" mentality.

The way I see it, you have a 2 year head start at least. 

[creditFiend]

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@IamB2 wrote:

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@wacdenney wrote:

I'm not worried about him running up a bill since I can set limits.  My main concern is that it will help him too much and give him enough rope to hang himself with one day.  I just want to help him and make it something importnant that we discuss with him.  My parents didn't do that with me and I screwed my credit up.  It's more about the importance of credit and helping him with that than it is about an allowance.

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I think this is a good thing. It is better to establish good habits early while YOU have the control with spending rather than when he gets his very own credit card. As long as any charges are "deducted" from his allowance, then we are in the right track. This establishes "spend only what you can afford" mentality.

The way I see it, you have a 2 year head start at least. 

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I agree with this also.

My experience:  When my son turned 15 in May, I added him as an AU on my Amex green.  I set a $500 limit & explained to him the do's & don'ts of the card.  He has a teen account with NFCU & uses it to make electronic payments to his card.  He receives an allowance weekly for chores, grades, etc.  Which I deposit into his checking account, teaching him the meaning of budgeting & saving.  I feel this is a good tool to prepare him for the future, as I was not told in my past, most of what I have learned here about credit. 

When I received my EDP, I added him & put a $500 limit on that as well.  I monitor his checking, savings, & credit card accounts daily, to track his spending, just as I would any other thing.  He now only use his EDP.  For iTunes, movies, bowling; etc.. (activities with his friends).  This also helps with my 30 swipes.  Before the bill is due, he makes payments from his checking to cover what he has spent for the month.  Sometimes I cover all just because he is a good kid.

Do I know what the future holds for him?  No I do not, but credit wise, & financial wise, he will be more prepared than I was when I turned 18, went to college & filled out my first Discover card application, received $1,000 approval by mail, & did not know diddly about the responsibility of credit. 

Due to his increased awareness in money management, he actually wants to major in Business, Finance or Economics.

To anyone who doesn't agree with adding your teen to your cc, I say  "to each its own".

To OP, good post! 

[Anonymous]

"I set a $500 limit"

See, this counters real world.  When he maxes out, it is not HIS money that will pay the debt, but YOURS.  In this scenario ALL money is yours, and whatever he pays on "his" AE bill comes from within.  It was a long time ago, but I didn't pay my son to cut OUR grass, I didn't pay my son to take out the trash for his mother, I didn't pay my son to rake leaves because I was on duty that day and not able to, I was out making a living to keep a roof over our heads, so yeah, ya you gonna rake the leaves pro bono.  I didn't pay him to make good grades.  The reward of good grades comes later.

I'm not saying this scenario is totally bad, its just not realistic, I've seen this movie before.  I've been walking the planet 59 years.  A trip to the local HS parking lot will see a bevy of nice rides, the drivers with laptops, cell phones, their living space complete with flat screen TVs, with 150 a month Direct TV hooked to it.  Use to having all these things at 15, they are NOT gonna do without them when they turn 23 and starting out on a job.  They use their credit to prop up the lifestyle they come from.  Soon everything is maxed out, and unlike daddy increasing the limit, or paying ya more to take out the trash 3 times this week instead of 2, to "make" up the difference, they find the banks and the boss a lot less cooperative.  "Boss I need a raise, I'm maxed out on my VISA."  And see what he says.

The country is literally full of "adult" kids returning home to live after being foreclosed, and bankrupt.  And based on MY life experience most come from the home with the scenario a 15 year old having credit supervised by a parent.  When you've had a cell phone since you were 12, never paid the first bill on it, and now at 23 you have statement in your mailbox good chance you have no clue what to do.  So what is the plan?  You're gonna sit down one night at the table, "well Johnny here's YOUR cell phone bill, now I'm gonna take MY money and pay it, because if I don't they will cut it off, because ONEDAY you'll hafta to pay it."  A 17 year old whose never had a job, not gonna understand that concept.  "Well ok, just make sure you get it paid, gotta lotta stuff going on this week."  For a 15 year old, next week is like a year, never mind age 23.

Many here have stories of mishandled credit, and a few blame their parents saying they were not taught how to handle it.  Point is, that lesson was learned, and it was taught on YOUR dime not someone elses, which in my book makes for a very good student.

Take a trip down to WalMart and note the older folks working the registers and door.  On social security or a pension, they had to take a job to bring more money in to pay for a husband that won't work, or a adult child who can't get out on his own.  My wife and I live a good life.   I paid my dues, and had a great 27 year career.  My wife is winding down hers.  But as much as I love my 34 year old son, I'm NOT gonna turn over any portion of my pension to him that I worked so hard and long to gain.  He better make it on is own, and so far he has done well.

Every parent wants it better for their kids then they had it.  Its a natural thing.  I just know this, you'd have to look far and wide to find a 16 year old kid who took a job delivery pizzas to pay for his cell phone, ever take it for granted.

I suspect many here are the grandkids of baby boomers LOL.  That would be MY generation, man did we mess things up.  LOL, it is from us, that the country now has so many people that think they are entitled to something.  

But like most say here, to each his own, I'd never tell anyone how to raise their children, I was just explaining why I raised mine the way I did.

[Anonymous]

That's a very good idea and as a 19 year old, I applaud you. If your child is responsible enough to manage money (most parents know about their childs financial discipline from past events and experience), I think it could turn into something positive. I wish my parents would have added me as an AU whenenever I was 15 so I could get started earlier and be all set by the time I turned 18, but I started, learned, and grew on my own in the credit world! 

I also respect others opinion on here that do disagree with the situation as they've made great points. I am a firm believer in working for the things you want. My parents helped me get my car with a down payment when I was 16, but I had to get a job and pay for the loan. I am going to follow the same principles for my children when I age as well. 

[Anonymous]

Both of my girls are in college and both are AUs on my amex. I set limits to cover books/some school expenses each semester, with extra padding in case there is some emergency. Both understand that it's not the "good time" card, and I do pay the bill. Both have jobs and their own student Discovers for extras - which they are responsible for paying themselves (I do admit to hovering over them at times to make sure they're being responsible with them). They also each have their own cars with their own loans that they are responsible for. I helped with down payments but certainly didn't mind that as it was peace of mind for me that they had good, late model cars with fewer chances of breaking down while they're away from home. So far, so good. They work hard, study hard, are careful with money. Here's hoping they continue!

[Luscher]

I think its great you are doing this for him and I wish somebody did it for me. I probably wouldn't give him the actually card until he was older but I like that he now has a tradeline on his report and in the future can backdate to 2014.

[Anonymous]

...and meant to add to the OP! I personally think you're doing a wise thing in getting your son off on the right foot credit-wise. He'll learn at a young age how to manage credit with you over his shoulder providing guidance and experience. When I got my first cc I had not a clue how to manage it and treated it like free money. What a mess!

[wacdenney]

Well...  The card came in the mail today.  I stuck a $200 limit on it and stuck it in the SD where it will sit at least until he turns 16 next year.  I'll give it a couple of months and then check to see if he has a credit report generated yet.  At that point we can sit him down and explain what it all means. 

He's done great with his checking account and debit card.  His mother can access it online and he deposits money he gets working for his grandpa and what he gets for birthdays and Christmas and stuff. 

I'm hoping this will be a net benefit for him and not a detriment as BamaGuy fears.    Time will tell...

[Anonymous]

I don't see it as a detriment.

And if one won't teach their young about credit then who will? The schools? Please, they encourage people to take out big loans to pay for college indiscriminately. (Whether they have a chance at graduating or not)

[Anonymous]

You definitely did the right thing. My mom added me as an AU at 15 or 16 and the DAY I turned 18 I signed up for Amex Blue Cash and was approved and it's my oldest and most used card.