A recent report that showcased the statistics of children owning credit cards showed that according to 6 million parents in the US, their children who are not even 18 years of age own a credit card. Additionally, the survey held by CreditCards.com told that around 21% of the almost 1524 parents who took part revealed that their kids have used their cards without permission. In fact, 13% of the number, even added that such usage without permission has happened quite a times.
Rossman from CreditCards.com said that such incidents are happening as the result of awareness and comfort with technology. He even added that he quite liked the idea of addition of a kid to a credit card only if he is diligently taught at home about the responsibilities that come with money.
It was noticed that around 13% of population of parents who make money over $80,000 yearly report of having a kid owning a credit card in contrast with the 5% of the population with the earning less than $40,000.
The usage of credit cards by the children is certainly high. T. Rowe Price even reported that almost 18% of the children in the age group of 8-14 were using credit cards of their parents as guests. This figure was around 4% in 2012 which is visibly lower than present’s.
Rossman suggests that the excitement mixed with urge to use credit cards at such a young age comes with the increasing exposure of kids online. Apps suggesting to be bought with a monthly or annual subscription lure them and hence, the usage.
Cindy Goodman, who is a co-founder of a blog called Raising Teens, told that she also added her girl and 2 boys to her Visa Card Account lately, once the children got their driving licenses at 16.