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

2. 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

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

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

5. 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

6. 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
OPTOUT
Responsibility
Debt collection
Consumer Action • Families and Credit Cards • American Express

7. 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

8. 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

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

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

11. 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

12. 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

13. 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

14. 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

15. 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:
Consumer Action • Families and Credit Cards • American Express

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

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

18. 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

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