America’s credit card debt is nearly $1 trillion, according to Federal Reserve data. How much of that debt belongs to your kids?
The 2019 Parents, Kids, and Money Survey from T. Rowe Price shows that credit card use has skyrocketed among 8-to-14-year-olds over the past seven years – from 4% in 2012 to 17% today. That’s almost as high as the percentage of kids with checking accounts (19%).
Only 41% of kids with credit cards pay their bill. Parents pay 59% of the time – although this statistic could be misleading. Kids in the 8-year-old to 14-year-old age range are probably paying off their debts with allowance money or earnings from chores. Parents are responsible for charges in any case since children that young can’t open credit cards under their own name.