There has been an enormous increase in the number of debit Cards for Kids. This has become a growing epidemic with most teenagers ending up with large amounts of debt. Being young, most teenagers don’t know or understand debt management and once they end up with large amounts of debt, they don’t understand how to get out of it. The result is that most of them start life with a bankruptcy or a bad credit history. Most of them work very hard for prolonged hours but still fail to settle their debts and some even get trapped in circular debt crisis in an attempt to make debt settlements.
Here we will attempt to explain the reasons Debit Cards for Kids behind this enormous increase in teenager credit card debt, despite the mostly grim consequences.
Reasons behind this increase are the aggressive marketing by credit card companies and the myth parents hold about providing their young child with one; that this is a way my child will learn money and debt management. Moreover, credit card debt is viewed by teens as an extension to their income and to the freedom where they can make purchases without bothering their parents or about whether or not they have money. Lastly, it is also because of the ignorance of teens about how credit cards work and the connection between credit card and cash. This lesson is learned however, though it is learned hard way.
Debit Cards for Kids view students as one of their potential customers and target them today. This way, by the time they start their career, the company already have them as their customers. This brings additional income to the company. So, they portray credit card as an essential need of the student. Due to influence of this image portrayed by marketers every student wants to look cool, spending care free and having freedom from cash and financing worries. Obviously, this freedom comes at a cost, of which student is quite oblivious.