Teen time-pass, whether in the college canteen, on the phone or shopping, it all comes at an expense. With every movie or every coffee burning a deeper hole in their pockets, teens are now relying on plastic to fill in the gaps. A few with-it parents have issued piggy-back cards to their yuppies-in-the-making with strict instructions to use the credit card judiciously.
Anupam Singh is a two-card carrying 19-year-old, “My parents gave me a debit card for my daily expenditure. When I wanted to download music from iTunes, because I couldn’t use my debit card, I used to borrow my mom’s credit card. Now, having my own credit card is handy when I am on a shop-till-you-drop spree. I even used it for a charity event when I ordered some food for the needy from a restaurant once. I also get to borrow my mom’s card when I really need to. There really is no tab on expenditures because my parents won’t mind too much, but I refrain from spending too much anyway.”
Some teenagers rationalise that in addition to being a budget-busting-buffer, the cards teach them valuable lessons in personal finance. Meenakshii Thakur, 19, a student of Chaitanya Bharti Institute of Technology says, “My credit card is a life-saver. I use the debit card for most transactions, but plastic money per se helps me tally up my expenditure. I can track where I spend my money. The problem with cash is that I blow it up but regret it when I am broke.”
But Meenakshii goes on to contradict herself with typical teen logic, “My friends and I are perennially broke at the end of the month and that’s when the credit card saves the day! Buying movie tickets, cakes and flowers online — the cards come in handy then. It helps to know that I am able to live within my means most of the time thanks to the detailed budgeting of my expenses.”
Though only a few elite schools in the country actually teach personal finance to their students, some old souls are financially savvy enough to regard credit cards as more of a bane than a boon.
Faraz Quershi, 19 is wise beyond his years, “No credit card company would issue me a card because I haven’t started to earn yet. My allowance comes directly to my bank account and I gladly use that to manage my monthly needs. Having a credit card comes with its own set of rules, which I won’t be able to manage yet. It is better to be safe than sorry and I don’t run up unnecessary bills. My debit card is enough for me to learn where and how much I am spending.”
N. Kartik Rao
The Asian Age