According to a 2021 Greenlight study, 32% of teens couldn’t distinguish between a credit card and a debit card. While these cards seem alike, they’re quite different.
If your child doesn’t know this key distinction, they could overdraft their debit card account, leading to overdraft fees and frustration. Things can even get more out of hand if they aren’t savvy with credit cards. Many teens don’t know that interest accrues on credit card balances at a rapid rate.
Unlike other forms of financing, credit cards have extremely high interest rates which are often north of 20%!
While this statistic is startling, it’s never been easier to teach your child the difference between these two cards along with other key financial concepts, thanks to a Fidelity Youth Account.
This account also comes with parental controls that give you oversight into the included debit card as well. You can also view transactions and current investment holdings.
Help Your Teen Become Financially Savvy With A Fidelity Youth Account!
Teens as young as 13 can start investing with a Fidelity Youth Account. All it takes is $1 to buy standard investments like stocks, bonds, and mixed, low cost ETFs in fractional amounts.
They can save even more money since there are no account fees, minimum balances, ATM fees or other surprise fees.
Open a Fidelity youth account today to receive $100 and $50 for your child.
The Fidelity Youth Account can only be opened by a parent/guardian. Account eligibility limited to teens aged 13-17.
¹Limited Time Offer. Terms Apply. Before opening a Fidelity Youth Account, you should carefully read the account agreement and ensure that you fully understand your responsibilities to monitor and supervise your teen’s activity in the account.
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Image and article originally from www.benzinga.com. Read the original article here.