Families and Credit Cards A project of Consumer Action and American Express Consumer Action • Families and Credit Cards • American Express

Consumer Action • Families and Credit Cards • American Express Youth and credit cards Early discussions about how to use credit can help kids steer clear of trouble when they become adults You can teach your kids how to get the most out of credit Consumer Action • Families and Credit Cards • American Express

What would kids need a credit card for? Emergencies Field trips and other travel Shopping Consumer Action • Families and Credit Cards • American Express

Credit Yesteryear Activity What was credit used for in your house growing up? Consumer Action • Families and Credit Cards • American Express

Credit card eligibility Individual credit cards are issued to people 18 years and older Your child can be an authorized user on your credit card account You (the primary cardholder) are responsible for all payments Consumer Action • Families and Credit Cards • American Express

Consumer Action • Families and Credit Cards • American Express Authorized users Credit card policies for authorized users (secondary accounts) vary widely: Minimum age Account numbers Billing statements Credit reporting 888 - 5OPTOUT Responsibility Debt collection Consumer Action • Families and Credit Cards • American Express

Consumer Action • Families and Credit Cards • American Express Take a Loan? exercise Please refer to the ‘Take a Loan? Needs and Wants’ Activity Sheet If you carry a credit card balance, you are taking out a loan to pay for your purchases Consumer Action • Families and Credit Cards • American Express

Discussing credit cards with your children What would your child use credit for? Set a spending limit Responsibility for paying part of the bill Consumer Action • Families and Credit Cards • American Express

Credit and spending management tools Online access Statements Alerts Financial calculators Consumer Action • Families and Credit Cards • American Express

Minimum payment example Balance: $1,000 Interest Rate: 15% Minimum Payment 3% ($30) Consumer Action • Families and Credit Cards • American Express

Consumer Action • Families and Credit Cards • American Express Do you know? How long would it take to pay off a $1,000 balance if only the minimum payment was made? Nine years Consumer Action • Families and Credit Cards • American Express

Consumer Action • Families and Credit Cards • American Express Do you know? How much would you pay in interest if only the minimum payment was made? $576 interest + $1,000 balance Total payback: $1,576 Consumer Action • Families and Credit Cards • American Express

Pay more than the minimum What would happen if you paid an extra $10 more per month ($40 instead of $30) Pay-off time would shrink to 3 years (instead of 9) $206 in interest (instead of $576) You’d save $370 Consumer Action • Families and Credit Cards • American Express

Consumer Action • Families and Credit Cards • American Express Credit card statement Please refer to the sample Credit Card Statement Activity Sheet Consumer Action • Families and Credit Cards • American Express

Consumer Action • Families and Credit Cards • American Express Recipe for good credit Damaged credit record can affect whether you get loans, housing, even a job Pay the bill on time Pay more than the minimum Check for mistakes and dispute errors Get free credit report: www.annualcreditreport.com Consumer Action • Families and Credit Cards • American Express

Credit card alternatives Charge cards Debit cards Prepaid cards Secured cards Consumer Action • Families and Credit Cards • American Express

Strategies for parents Brainstorm how best to help parents reach kids with smart credit card strategies Consumer Action • Families and Credit Cards • American Express

Consumer Action • Families and Credit Cards • American Express Questions and answers Do you have any questions about the training? Consumer Action • Families and Credit Cards • American Express

Thanks for participating! Consumer Action • Families and Credit Cards • American Express