the problem with credit cards today is that people under 18 cannot have their own. How can we instill hardworking qualities in our young people while denying them the right to use their money as they choose?
How can we instill hardworking qualities in our young people while denying them the right to use their money as they choose?
Because it's not their money. It's the bank's money, and they are just loaning it. I don't know anyone under 18 that I'd loan money to.
People under 18 can have checking accounts. That's how you learn how to manage money, by having a finite amount to manage, not by having some open-ended letter of credit.
Not everywhere. I had a bad experience with this, myself. When I was about to start college, my mom went with me to get a checking account. We went to a local branch of a national chain of banks (so I would be able to access it easily at school as well as at home).
Because I wasn't 18 yet, they wouldn't let me have a checking account. Period. Not even if my mother co-signed for it.
Now, I was about to go to college. When I'm 400 miles away, I have to pay some of my own expenses, like books and non-cafeteria food. I wasn't asking for a credit card, just a way to write checks and pay my bills.
I ended up getting a checking account (with a debit card, no less) from my parents' credit union. It was the only place I found where a minor could have a checking account - and I didn't even need a co-sign. Unfortunately, they're only in my hometown - but their level of service makes them worthwhile to me. And I still remember that none of those other banks would give me an account 4 years ago.
Same here - shortly after turning 16, I called around to all the banks in my area, trying to find one that would give me a checking account. One bank even told me that they would over the phone, but then claimed that they wouldn't once I got there.
Finally I discovered the credit union, and haven't looked back. No monthly fees doesn't hurt either.
I can see why, though. Even though there is a set amount of money in the account, if you have a check book and don't closely track your balance, you can bounce checks, and that is not that good for the bank, especially if the person bouncing checks is under 18. When I was 16, I got a checking account with a bank, but only when my parents would be jointly on there, so an accountable adult would be responsible if a problem should arise. I think this is perfectly fine and sensible. I managed my money fine those days, but a great deal of people I knew wouldn't have at that age.
Yea, maybe they can have checking accounts, but what can they do with it? They can't write checks, can't get a debit card... So it's useless. I don't see why they shouldn't give out debit cards, the kids couldn't lose more than they have, so the bank doesn't take a big risk...
I had my checking account before I was 18. I didn't get cheques, but I got a debit card (with a PIN number and magnetic stripe and all). I couldn't have a negative balance, though (not that I needed one).
In The Netherlands, debit cards are very common, and you can pay with them in almost every store, and ATMs are everywhere too, and always at post offices and banks.
a problem (Score:2, Insightful)
Re:a problem (Score:5, Insightful)
People under 18 can have checking accounts. That's how you learn how to manage money, by having a finite amount to manage, not by having some open-ended letter of credit.
Checking accounts (Score:2)
Not everywhere. I had a bad experience with this, myself. When I was about to start college, my mom went with me to get a checking account. We went to a local branch of a national chain of banks (so I would be able to access it easily at school as well as at home).
Because I wasn't 18 yet, they wouldn't let me have a checking account. Period. Not even if my mother co-signed for it.
Now, I was about to go to college. When I'm 400 miles away, I have to pay some of my own expenses, like books and non-cafeteria food. I wasn't asking for a credit card, just a way to write checks and pay my bills.
I ended up getting a checking account (with a debit card, no less) from my parents' credit union. It was the only place I found where a minor could have a checking account - and I didn't even need a co-sign. Unfortunately, they're only in my hometown - but their level of service makes them worthwhile to me. And I still remember that none of those other banks would give me an account 4 years ago.
Re:Checking accounts (Score:2)
Finally I discovered the credit union, and haven't looked back. No monthly fees doesn't hurt either.
Re:Checking accounts (Score:2)
Not Quite... (Score:1)
Re:Not Quite... (Score:1)
In The Netherlands, debit cards are very common, and you can pay with them in almost every store, and ATMs are everywhere too, and always at post offices and banks.
Re:Not Quite... (Score:1)
I couldn't have an overdraft though, obviously, being under 18 and all.