re: Adding children to a credit card account

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making sure your kid has credit is a pretty good thing to do for them.

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I disagree. Making them understand credit and how to build their own good credit score is more important.

My parents added me to their Texaco/Shell gas card when I was 16-17. They had that account since 1985 (I was born in ‘82) and all of that credit history reflects on my credit report/score. Thanks Dad!

I thought while Authorized users still show up on credit report, they changed the score formula so that the AU has no impact on the credit score?

My kids are still pretty young, but I don't see giving them a credit card. If they want to drive, they will get a job and pay for their own gas money. When they go to college, they will get a bank account and a job and I'll add some money to their account as well.

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My parents are big if you don't have cash you don't need it people. They just got credit cards in the last year when I explained to them how rewards work

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My parents were the same.

In addition, they are close to retirement and I have been working on them for years they shouldn't have months and months of cash in their banking accounts at current rates. Invest it, or put it in intermediate term bonds at least. With a solid investment income stream, and good LOCs to cover emergency blips until you cut a check to pay it off, you really don't need more than a month or so in the checking account at a time.

Luckily the investment adviser they hired agreed with I've been telling them and they started to draw down that balance.

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I hear a lot of people say this, but I wonder what the percentage is on people that actually do it. Im not bashing you if that's what you want to do, but do you really want to still be hauling your kids around when they could drive themselves? I played fall and spring sports in high school and I know my parents had enough driving me back and forth to practice as a kid.

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this. My son is 16. When I was 16 I had a job and my school work was shite. C student at best. I worked all through high school and college. I often put having money in my pocket before school. My son does odd jobs and stuff for his grandparents when he wants new video games etc but I want him to put school first. He is a excellent student with a decent ACT score so far. The money I spend on him affects me in no way and I want him to put grades, internships, scholarships, ACT prep etc first. That will bring him much further in life than any min. wage job IMO. I said the exact same thing about him working after school etc. But I want him to put his education FAR first.

My son is 15 and already knows he'll be required to get a job if he wants a car when he turns 16. I don't expect him to pay for all of his gas from that job, but he will absolutely contribute. Transportation to things will work itself out like it did when I was in high school and didn't have a car. Most of his friends come from upper middle class households and will likely get brand new cars. He's already complaining about the used cars we've been looking at for him. If he doesn't want that, he can bum rides or ride the bus to school. No sweat off my back.

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I hear a lot of people say this, but I wonder what the percentage is on people that actually do it. Im not bashing you if that's what you want to do, but do you really want to still be hauling your kids around when they could drive themselves? I played fall and spring sports in high school and I know my parents had enough driving me back and forth to practice as a kid.

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I like spending time with my kids?? I don't mind dropping them off. The reality is, though, they won't want Mom and Dad to drop them off and pick them up, so they will do what it takes to get gas money, or they will find rides with friends, etc.

I'm willing to buy them a decent car and pay the insurance. Asking them to pay for their gas by working a few hours a week I don't think is too much to ask. Yes, I value education, But if education is a problem for them, their social time is going to be limited anyways, so no need for the money.

Both of the cards are gas cards. I wasn't added until I was 16

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No offense, but y'all sound a little entitled. It's not hard at all to build up your own credit history while either in college or just after graduating college. Most banks/credit unions have car loan programs for recent graduates with competitive rates. A lot of car dealerships have similar programs. And it doesn't take much time to turn a secured credit card account into an unsecured one with a high enough limit to meet a young person's needs. No, you won't be able to charge all of your expenses to that card and start earning airline/hotel points, but in a few years with responsible usage you'll unlock that benefit.

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We get it you don't think people should help their kids build credit. That doesn't mean he's entitled. All he did was suggest to his parents that the rent they were already paying for be paid on a credit card in his name to help him build credit while still in college instead of in cash. That is not only a reasonable request, IMO, but a smart one. They could have helped set him up better for later in life, or they could have done it on a credit card in their name and taken advantage of the rewards. Either way they were giving something up by paying in cash.

I understand teaching financial responsibility, but credit history really has nothing to do with that. There's one way to get it and that is having credit. I don't understand why you're so against it. If a kid has a good credit score from their parents, gets out on there own and then doesn't pay their bills they'll figure out real quick how it works. If they have no or little credit history and need it they'll get a shitty rate on a loan and still figure out that if they don't pay their bills that your credit will be bad. There is no real benefit, but a lot of negatives.

Huh?