fb-top phone icon 34319.266.7531



Is Your Teen Financially Savvy? Part 3

By Hannah McElhose

Part 3 of 4 - Teens and Credit Cards

We all know that credit is important, but why don’t we teach our children good credit card habits from an early age? Teaching good credit and spending habits and how to be a responsible credit card holder can dramatically improve your teenager's future costs by driving their credit score up and paving the way for their future. Having a high credit score leads to being approved for loans and being offered the lowest possible rates on those loans. Employers are now looking at credit scores when they choose who to hire. Plus, rates on insurance premiums are sure to be lower due to having a great credit score. Another advantage to opening a credit card for your teen, is that they provide more safety than debit cards and cash when it comes to fraud. And if lost, it can easily be shut down.

Now that we've covered the advantages of your teenager having a credit card, let's talk about why you should consider the CFCCU credit card as an option. CFCCU offers great low rates on their cards and they will allow the spending limit to be low in order to minimize the chance of overspending. CFCCU offers text alerts at low thresholds, which enable you to monitor your child’s transactions. Lastly, your teen can make quick, easy payments via the CFCCU app, website, or in person at any branch of CFCCU.

Although there are many advantages to giving your teenager a credit card, there will be some risks. Risk comes with every situation, and can be used as valuable teaching moments with your child by providing him or her a better understanding of how to manage their credit when they are older.

If you'd like more information on this topic, click here to view an article I found interesting on Teenagers and Credit Cards.

I encourage you to reach out to your local Cedar Falls Community Credit Union today to see if this could be the right option for you and your teen.

123 W 4th St, Cedar Falls, IA 50613 (319) 266-7531
420 Viking Road Cedar Falls, IA 50613 (319) 277-3690
2000 Heritage Way, Waverly, IA 50677 (319) 483-2241


Hannah Headshot small

Hannah McElhose is a Senior at Cedar Falls High School, where she is actively participating in the CAPS (Center for Advanced Professional Studies) Program. As part of her CAPS project, Hannah performed an anonymous survey of high school students about their knowledge of money, savings and checking accounts, credit and debit cards, and saving for college. Using her survey results, Hannah prepared a 4 part blog series titled, 'Is Your Teen Financially Savvy?'

Is Your Teen Financially Savvy? Part 4
Is Your Teen Financially Savvy? Part 2