1. A project of Consumer Action and American Express

2. 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

3. What would kids need a credit card for? Emergencies Field trips and other travel Shopping

4. Credit Yesteryear Activity What was credit used for in your house growing up?

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

6. 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

7. 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

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

9. Credit and spending management tools Online access Statements Alerts Financial calculators

10. Minimum payment example Balance: $1,000 Interest Rate: 15% Minimum Payment 3% ($30)

11. Do you know? How long would it take to pay off a $1,000 balance if only the minimum payment was made?  Nine years

12. 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

13. Pay more than the minimum Pay-off time would shrink to 3 years (instead of 9) $206 in interest (instead of $576) You’d save $370 What would happen if you paid an extra $10 more per month ($40 instead of $30)

14. Credit card statement Please refer to the sample Credit Card Statement Activity Sheet

15. 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

16. Credit card alternatives Charge cards Debit cards Prepaid cards Secured cards

17. Strategies for parents Brainstorm how best to help parents reach kids with smart credit card strategies

18. Questions and answers Do you have any questions about the training?