Adding your child as an authorized user on your credit card can be a game-changer for their financial future. Money experts recommend this strategy, especially for teenagers around the age of 16 or young adults in their early 20s, as it allows them to build credit history by leveraging their parent's good credit standing. Ted Rossman from CreditCards.com emphasizes that this approach serves as a stepping stone for kids to establish credit in their own names, which has become increasingly difficult. By allowing children to use a credit card, parents can teach them essential credit management skills, such as responsible spending and timely payments. However, this strategy should only be pursued if the parent has a solid credit history, as any negative behavior, like late payments or high balances, could adversely affect the child's credit score. It's crucial for parents to set a timeline for this arrangement and understand their ongoing financial responsibility.
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