As teens grow, so will their independence and desire to spend money. Here are some things to consider, as well as the pros and cons – when choosing what financial options may be available to your teen as they begin to build their financial independence.

Credit Card Pros:

• Credit History Building: Allowing a responsible teen to be an authorized user on a parent or guardian’s credit card is a good way to start. If your teen is at least 18 years of age and can demonstrate independent income, or if they have a co-signer who is at least age 21 – they can apply for a credit builder card like our First Step Credit Card.* This will help them start building a credit score early, setting them up for future milestones like renting an apartment or financing a car.
• Convenience & Cash Safety: Using a card is easier and safer than carrying cash, especially for online purchases.
• Parental Oversight: With monitored statements and spending limits, you can review and guide your teen’s card usage and teach them financial responsibility.

Credit Card Cons:

• Risk of Debt: Teens may overspend if not watched closely. High interest and large balances can quickly become problematic.
• Credit Damage: Missed payments or maxed-out balances can hurt your teen’s credit score and potentially yours, if they’re an authorized user on your account or if you are a co-signer.

There are also some pros and cons for adding your teen as an authorized user on your credit card.

Authorized User Pros:

• Credit Boost: Your teen will build their credit without needing a separate application.
• Fully Supervised: You get to maintain control, get the statements, and manage spending limits.

Authorized User Cons:

• Credit Entanglement: Your credit habits directly influence your teen’s, so any late payments or high credit utilization will affect both credit scores.

You’ll need to weigh out all the options and decide which might be the best fit for your teen and your household.

For younger adults between the ages of 14 and 23, First Financial offers a Student Checking Account – which comes equipped with their own debit card.** If you’re not quite ready to add your teen as an authorized user or for them to have their own credit card, having their own debit card would be a smart place to start.

Student Checking & Debit Card Perks:

• Safe Spending: A student checking account with its own debit card, encourages budgeting and responsible habits without debt risk.
• Visual Learning: Teens will gain real life experience tracking balances, spending, and earning — a practical path to financial responsibility.

Teaching Financial Responsibility Along the Way

It’s not just about having a card or not, it’s about creating a healthy relationship and mindset surrounding money.

• Budgeting & Banking Basics: Start with allowances or part-time earnings, and show your teen how to prioritize needs vs. wants, and plan ahead.
• Real Conversations Lead to Smart Habits: Open discussions about money and sharing household budgeting decisions will help teens feel included and more invested in learning.

Make the First Step with First Financial

We’re committed to empowering young adults and their parents, with financial tools and skills that will last a lifetime. Contact us today with any questions or to help you choose the option that will best fit your teen’s path toward financial independence and success.

*APR varies from 17.15% to 18% for the Visa® First Step Credit Card when you open your account based on your credit worthiness. This APR is for purchases and will vary with the market based on the Prime Rate. Subject to credit approval. Rates quoted assume excellent borrower credit history. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. No Annual Fees. Other fees that apply: Balance Transfer and Cash Advance Fees of 3% or $10, whichever is greater; Late Payment Fee of $29, $10 Card Replacement Fee, and Returned Payment Fee of $29. A First Financial membership is required to obtain a Visa® Credit Card and is available to anyone who lives, works, worships, volunteers, or attends school in Monmouth or Ocean Counties. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account/loan.

**A $5 deposit in a base savings account is required for credit union membership prior to opening any other account. Debit Card must be linked to a First Financial Checking Account. Debit Cards are available for First Financial members with Checking Accounts only. All personal memberships are part of the Rewards First program and a $5 per month non-participation fee is charged to the base savings account for memberships not meeting the minimum requirements of the program. View full Rewards First program details at firstffcu.com.