Credit Cards for Kids? Not in My House

The Hello Kitty brand MasterCard debit card is targeted at 10- to 14-year-olds. (Courtesy Of Legend Credit Inc.)

It's in the nature of children to want to do adult things. Already my 10-year-old daughter, Olivia, wants to wear makeup.

But on this issue, I learned a very important child-rearing lesson from my grandmother, Big Mama, who raised me.

"Girl, grown stuff is for grown folks," she would say when I tried to act grown up.

Big Mama's simple declaration is one that many parents are failing to grasp, especially when it comes to teaching children about personal finance. Parents and, because the parents allow it, grandparents, aunts, uncles and friends of the family are increasingly introducing grown-folk concepts to children.

For example, Olivia recently attended a birthday party for two of her classmates who were turning 11. When my daughter returned from the party, she was so excited about one gift both girls received -- a prepaid credit card.

"Daddy, can I have one of those cards?" Olivia pleaded.

Now, the girl knew better than to ask me. She's heard me often enough vent about the perils of plastic. She knows I think credit is evil.

Still, even I was a bit shocked at my husband's quick response. He didn't hesitate for a moment.

"No, not happening," he sternly told our daughter.

Not daunted, Olivia protested that the card wasn't "really" like a credit card.

Don't children always think they know everything?

Olivia correctly explained to her father that this type of card had similarities to a gift card. You can spend only the amount of money you've loaded onto the card. However, what's insidious about this particular card is that it looks like a traditional credit card, logo and all. It can be used at places that accept credit cards.