In today’s digital world, where everything is developing rapidly, technology has become inevitable and has succeeded in becoming an essential part of every individual’s life. As a result, the concept of digital payments using credit cards has also gained much attention among today’s youth.
According to an article published at Shift Processing, there are about 2.8 billion credit card users worldwide, and 70% of people have at least one credit card. Similarly, according to the article published in fool, 54.3% of teenagers between the ages of 18-20 obtain their first credit cards.
Payment using a credit card has fascinated a teenager to an extreme level. Teenagers find carrying a credit card extremely handy than carrying money, as their parents, which is accurate; however, handing a credit card to a teenager may not always be safe.
If you are curious about why teenagers love using credit cards, the risks associated with them, and how to control teenagers using credit cards, this article will help you out.
Why does a teenager love to use Parent’s credit card?
Some of the reasons why teenager loves to use their parent’s credit card are listed below:
- As per the law, teenagers under the age of 18 are not considered eligible credit cardholders. Therefore, they have to wait until they reach 18 to apply for their credit cards. So, they ended up using their parent’s credit cards.
- Teenagers get more fascinated by new trends in fashion. Thus, they want to buy everything trendy that they see online. So, for buying such stuff, they use their parent’s credit cards.
- Teenagers want to try out every new technology that is hyped online or around the world regardless of their age, and payment using a credit card is also one. However, since teenagers below 18 are not considered eligible for their credit cards, they use their parent’s credit cards.
- Teenagers, primarily boys, use their parent’s credit cards for buying online gaming subscriptions without their parents’ knowledge.
If you find your teen using your credit card without your knowledge and want to get some tips on controlling their credit card usage, the below-mentioned guideline will help you out.
How to Control Teenagers Using Unauthorized Parent’s Credit Cards
Here are eight ways to monitor and keep a close eye on your teen’s credit card usage…
1. Check credit card statement periodically:
You must check your credit card statement from time to time, even if you have not accessed it for a long time. By doing so, it helps you to keep track of your credit card usage. In addition, you can also be aware of when and where your son/daughter has used your credit card.
Not only it helps you to keep an eye on your son/daughter’s credit card usage, but it also helps to check whether your credit card has been hacked or not. Besides this, checking your credit card statement also allows you to be aware of the unnecessary tax deduction done by your bank from your account.
2. Use Parental controls
One of the most significant ways of controlling teenagers from using their parent’s credit cards is by installing parental monitoring software. Using a parental controls app helps the parent to monitor and keep track of all the activities done by their children online.
Parents can look into their son/daughter’s search history and check whether any online shopping site or any site that requires payment has been viewed or not. In addition, parents can also get notified whenever their teens try to make payments through their credit cards. Besides this, parents can also block some sites from viewing that they find mischievous through their devices while browsing their son/daughter’s search history.
3. Change credit card’s pin
Changing a credit card’s pin is also an effective way to stop your teen from using your credit card. For carrying out any transaction, a PIN is a must. So even though your teen gets their hands on your credit card and is willing to make the transaction, they won’t be able to carry it out.
But while changing your PIN, you must keep in mind that you should not keep your PIN too easy to guess by someone close to you.
4. Keep your card safe
Another effortless way to control your teens from using your credit card is by keeping your credit card in a safe place. Make sure that your credit card is always with you, either in your pocket or in your wallet.
But always keeping credit cards close to your body, especially when you are at home, does not seem to be a good option. However, you can still keep your credit card in a secret place or in such a place that you are sure your teen can not find it. Make sure you do not place your credit card out of your sight.
5. Keep your credit card details private
One way to keep your card safe and out of reach from your teen is by making your credit card details private. Teens often try to lure their parents by saying good things or by blackmailing them emotionally to get the details, especially their PIN code.
So, parents need to be more careful and try not to fall into their trap. Parents should also avoid writing their PIN code and other credit card details in the paper and keeping it together with the card in the wallet.
6. Utilize your credit card’s security features
Credit card mobile apps provide various kinds of features for security purposes. One of them is two-factor authentication. As the name suggests, it is a two-step verification security process. Enabling this feature helps you to get notified of unauthorized access to your credit card. You can also get the option that alerts you via mail or message whenever your credit card is used.
Thus, even if your teen gets their hands on your credit card and wants to access it, they will be unable to do so.
7. Teach your teen about the proper use of credit card
Teenagers often seem fascinated about using credit cards for shopping. They might think of credit cards as money-granting objects because they saw their parents using credit cards for shopping from a younger age. So, whenever they want to purchase something, they automatically start looking for credit cards.
Thus, it becomes the parent’s responsibility to make their teen aware of the problems caused by using it and make teens familiar with the concept of savings and deposits.
8. Give your teen freedom to use a credit card but allocating a specific budget
In today’s era, keeping your teen away from new technology is also not a good option. Instead, freedom helps teenagers to explore more about different things and understand how life is. Parents also need to understand that today’s generation and technology are inseparable.
Keeping this in your mind, sometimes you need to give your teen freedom to use your credit card, but again, giving too much space is too dangerous for both parents and their teen. So, considering all the boon and curse of it, parents should allow access to their credit cards but only allocating a specific budget for a particular task. In doing so, it may be a win-win situation for both parents and their teen.
Everything has some pros and cons. For example, allowing your teen to use your credit card for their comfort to some extent is fine, but you also need to understand the risk associated with it. If you are wondering what the issues can be, the below-mentioned information may help you out.
What are the risks of teenagers using parent’s credit cards?
Some of the risks of teenagers using parent’s credit card are listed below:
- Most teenagers are impulsive buyers. According to the article published in Statista, roughly half of the purchases carried out by teens are the results of impulsive buying. Teenagers often buy goods and services without planning. As a result, they ended up spending their parent’s money on unnecessary things.
- One of the significant risks that your teens may face is credit card fraud. Unfortunately, teens often get lured by the offer on the internet and get into fraud traps by giving details about credit cards unknowingly.
- Teenagers can also be victims of scams or phishing attacks online by clicking the emails or messages containing links that claim to be from credit card issuing banks.
- Sometimes your teen may misplace your credit card or end up losing it. Losing it may not be a big issue unless thieves get a hand on it.
- Teenagers sometimes may use the card on a suspicious website for online shopping purposes and become the target of credit card fraud.
Everything has its pros and cons, similar to the usage of a credit card by your teens. Becoming familiar with the new technology at an earlier age/ teenager can benefit your teen. However, it can be harmful to both of you. Your teen may end up overspending, buying unnecessary goods, or can be the victim of credit card fraud, but not to worry about it. Instead, acknowledge them about the proper use of credit cards and the risk associated with it.