Resources for Teaching Kids About Credit Cards

Credit card Simulator
A credit card simulator, like the one provided by Channel One News, can allow your child to see how long it can really take to repay something that seems like a minor purchase at that time, especially if you're only making minimum payments. Your son or daughter can then adjust the minimum amount that she pays every month and see how she saves money and pays your debt off more quickly.

Websites
An Internet-savvy child could learn everything she must know about credit cards through websites that focus on children. ING Direct's Planet Orange and the Bay area Federal Reserve Bank's FedVille both offer information about charge cards and how they work in a kid-friendly design.

Prepaid Debit Cards
If you think that your child is ready for the next phase, you can give him a prepaid debit greeting card. This allows him to make purchases within the actual limit, as he'd be able to do having a regular credit card, but not actually ruin their credit if he makes mistakes. If he includes a job, you can require him to continue to pay for the balance back every month, making it a lot more like a real credit card.

Worksheets
If you wish to incorporate some math into your lessons, you may use credit card worksheets, such as the ones from Education World. These allow your child to calculate how small differences -- just like a higher monthly payment or a lower interest rate -- actually make an impact in the final cost of a product purchased with credit cards.

Books
If you often find your child together with his nose in a book, then a book may be the right approach. You might try something like "The New Completely Awesome Money Book for Kids" by Arthur and Rose Bochner for any factual approach. Younger children might enjoy "Why Did I Understand this Credit Card Education" by Twyla Prindle.