Expert: Give 16-Year-Olds a Credit Card

There's a lot of power in credit cards.

If used the right way, you're guaranteed good credit. But if a credit card is abused, you could end up paying for that mistake, the rest of your life. That's why financial expert Mellody Hobson of Ariel Capital Management says teens as young as 16 should be given the chance to charge.

"I think it'll teach us more reponsibility and we'll be able to take of more of our money now." a 16-year-old junior at Jones Academy said.
 

"I don't think i can handle a credit card, because I'm a teenager. I want everything." another junior at Jones said after school.
 

"I just buy things just to buy things. I can't control my spending." a 16-year-old student said.
Nikko Ross and Noble Elliott wrote the book, "The Steady Way," the guide to the stock market by teens. The Whitney Young seniors published it themselves to educate their peers about money. They agree with Hobson, who says credit cards connected to mom and dads account at a young age can teach teens the financial responsibility they ned before they go off to college.
 

"If they understood the interworkings of it, how much debt comes with it, they'll understand how much to spend and how much to save." author and high school Nikko Ross said.
 

But financial expert Karen Caldwell says teaching teens that lesson with a loaded credit card could earn you and your child a "f" in Money 101. Caldwell has another idea for parents.
 

"A debit card can be good because it gives them access to cash but what it also does it is allows you to cap charges." Karen Caldwell, of Amundi Investments said.

If you're interested in getting a copy of the students' book "The Steady Way", the guide to the stock market for teens by teens. Check out their website: stackyopaper.com