Keep credit cards away from kids, US study warns

A fascinating study commissioned by brokeragesuch as Dora the Explorer and Barbie action figures
Charles Schwab investigating how teenagers' treatcarrying their own credit cards are now sending out all
money and debt has been grabbing the headlines inthe wrong messages. "It's out of control!" he raged.
the United States, and contains some findings that we"McDonalds recently gathered a focus group that
in the UK could do well to consider.identified anyone using a credit card at the restaurant
The survey entitled "Teens and Money, 2008" haswould spend almost 47% more than those using cash.
highlighted American teenagers' casual approach toAnd what's one of the toys released in time for
debt and interestingly suggests that their habits couldChristmas this year? A McDonald's cash register that
be learned from an early age, playing board andteaches kids how to use credit cards.
computer games and with other toys that incorporate"As a parent we can't get mad at Dora or Barbie, but
credit cards as an integral part of the fun. Somewe need to step back and think what message we're
commentators in the States have gone so far as tosending to our kids," warns Ramsey. He does not
suggest that games and other gifts send the wrongbelieve that rampant commercialisation of toys such
message to children about money.as Game of Life, which is sponsored by Visa in the
As the results of the survey are from AmericanStates help, nor does the adaptation of traditional
teenagers, it would be interesting to duplicate thegames such as Monopoly to incorporate a credit card
research here in the UK. The survey produced resultsdeals within the game.
which have certainly got parents and child expertsBut, it remains to be seen whether this US
talking:commentator's concerns are applicable in the UK.
- 51% of teenagers agree that it's easier to buy thingsCredit cards are yet to be introduced as an
with credit cardsaccessory for Barbie, and thankfully the UK electronic
- Given the choice almost 1 in 3 teenagers wouldbank version of Monopoly uses only debit cards, which
prefer to buy with a credit cardis a more responsible approach and one that Ramsey
- Teens are motivated by parent's behaviour, 25%would certainly applaud. In the UK we are certainly a
saying that their parents are more likely to use a creditlong from having Action Man and Barbie sit down and
card than cashcompare credit cards in their wallets, which might not
- 29% of teens are already in debtbe the case in the US.
One US radio host Dave Ramsey is certain that toys