In an effort to lay a framework for success, parents introduce various responsibilities into the lives of their children. Middle adolescence (aged 15-17) is a crucial stage for this. The period is important for cognitive development as teens improve their reasoning, think more about the future, and begin to develop a personal philosophy. The increased independence-seeking behaviors are normal, making it a time when parents should provide guidance while respecting their teen’s growing autonomy. Understanding that promoting financial literacy is a component of the latter, parents wonder “Should teenagers have credit cards?”. While you must be 18 years of age or older to apply for a credit card in the United States, minors between the age of 13 and 17 can secure one by becoming an authorized user on a parent’s or guardian’s account. But just because they can get one through you, should you allow it?
Today’s discussion excludes debate over whether or not establishing a credit history, through the use of credit cards, early in life as as important as the nation was once led to believe it was. This has become a contentious topic of late. Instead, it seeks to answer the query by reframing it as a mental and behavioral health concern. In view of the reciprocal relationship between problematic debt and poor mental health, this construct is absolutely worth consideration. Please keep reading.
Mental / Behavioral Health Considerations for Parents Deciding on Whether or Not to Let Their Adolescent Teenager Have a Credit Card
Are There Any Mental Health Conditions?
Recent data on debt and mental health in the United States confirms that certain conditions are associated with burdensome financial obligations. You can reference exact statistics here if you want deeper insight. Otherwise, take note that the following mental health conditions are associated with problematic debt.
| Anxiety | Attention Deficit Hyperactivity Disorder |
| Bipolar Disorder | Obsessive Compulsive Disorder |
| Chronic Stress | Depression |
Does your teenager struggle with any of the above? If so, it’s best to postpone independent use of a credit card until they have matured and developed the necessary counselor-provided tools to manage their overall mental wellbeing.
Are They Frequent Gamers?
It’s also important to be mindful of behavioral health concerns relating to certain activities that youth are frequently engaged in. Video gaming tops this list.
The landscape of gaming has changed dramatically with the arrival of in-game purchases and launch of the iOS App Store in 2008, which solidified the model of making micro-transactions a primary funding source for many mobile games. In-game purchases are transactions made within a gaming environment that allows a player to buy virtual items, make upgrades and cosmetic changes, reach new levels, and gain functional advantages. While digital funds can often be earned via game performance, most gaming apps now allow digital credits to be purchased using real money.
Unlike with many online gambling apps (view credit card restrictions by U.S. state) a credit card can be used to fund in-game purchases for most gaming apps that young teenagers use. This includes Fortnite, Roblox, Minecraft, and much more.
The National Library of Medicine reports on a wide body of research that has established a link between a gamer’s frequent engagement with micro-transactions and an increased risk of credit card debt. This connection is often tied to the use of manipulative psychological design tactics that mirror those used in online gambling. The latter is very evident in the gaming concept of loot boxes (view details) which are employed in games that young teens engage with, including Apex legends, FIFA, Mario Kart Tour, Overwatch, Star Wars Battlefront 2, and the aforementioned Roblox. While many teenagers are aware that they are making micro-transactions, some are not. Further, many are unaware of the real-world financial implications, namely when games obscure the connection between in-game purchases and real money.
The nature of micro-transactions and lack of regulations regarding the allowance of credit cards to make in-game purchases can be problematic for parents. If your teenager is a regular-to-habitual gamer, arming them with their own credit card could be risky business.
Is There a History of Debt in the Family?
Credit card debt may not be genetic, but there is evidence that the presence of certain genes can influence behaviors like impulsivity and risk-taking, which may make an individual more likely to accumulate debt. Scientific American reports on a study which found that individuals with one or two “low efficiency” versions of the Monoamine Oxidase A gene (MAOA) were more likely to report having credit card debt compared to those with two “high efficiency” versions. This higher probability of credit card debt is associated with a greater likelihood of impulsive or addictive behaviors. Harmful situations that a predisposed teenager armed with a credit card can get into include those related to gaming (as per the section above) and shopping.
We’re not suggesting that you test your teenager for the low efficiency MAOA gene when making a decision about a credit card. That would not be practical. However, take an inventory of those closest to them on the family tree. If either parent or grandparent has a history of problematic behavior that has directly caused significant debt, pause plans on that credit card until they have matured and developed financial literacy.
Put your teenager on a path towards financial wellness by taking the time to confirm if/when they are truly ready for a credit card. Addressing existing mental and behavioral health concerns may need to come first. If so, Kindbridge Behavioral Health can help. We provide virtual counseling services for families and teenagers. Reach out via the contacts provided below to ask about our family services.
