Teenage finances

Webhomer

Hi,

I hope someone can help me. My daughter is 17 on Sunday and has two years left before she goes to university. We want to instil some good budgetary habits and are proposing to pay a monthly allowance into her Lloyds Bank current account so that we only pay to feed her and provide a home. She will be responsible for clothes, toiletries, entertainment, petrol etc.

I don't like the idea of her having to walk round with a lot of cash if she is going shopping but all Lloyds Bank will give her is an Electron card which is quite limited in scope. I wanted to take out a credit card with me as the primary cardholder and add my daughter as an additional cardholder, the idea being that we would have a low credit limit on it and that she would be the only user and would have to clear the account each month, but all the cards I have looked at state that the additional cardholder must be over 18.

Is anyone able to suggest a solution?

Webhomer

Rikki

My 16 year old has a current account with Nat West. He has a debit card for use in stores and cash point machines. He's had the account since he was 14, he has always operated the account himself.
I wouldn't even consider giving him access to any form of credit. He has money into his account each week and works through the holidays, if he wants anything he saves for it. He doesn't get it and then pay it back. To me it would be teaching him to be in debt is ok.

Niteflyer

You could always try one of the Pre-Paid mastercards, that was you can keep a trck on what she spends as she will only be able to spend what you put into the account

Mark7799

Could your daughter get a credit card (even as an additional cardholder) as she is under 18? What about a joint bank account between both of you? It will give you access to the account and you could control her options as well

Thefunkygibbons

I think that as an additional card holder she does not have a separate credit limit

Basiaclly she has access to your credit limit and you are responsible for meeting the full bill

I don't think she would like that as you could see verything she is spending money on