Would you let your child use your credit card? Should you? Pester power, or “the nag factor”, refers to “the ability that children have to make their parents buy something, by asking for it many times until they get it.”

Children can be experts in persuading you to lend them your credit card, especially as a quick fix for an emergency payment.

The bank of mum and dad is usually the first stop in any teen’s financial emergency. For example, I’m sure you’ve heard one of these:

• Before school: ‘I forgot to tell you about the school camp, we have to pay for it today!’
• Going out the door to a celebration: ‘Have you got any change for me to go out for my friend’s birthday, I’ll need to buy food!’
• On holiday: ‘I’ve left my pocket money at the holiday apartment and need to pay for an ice cream.’
• Family needs: ‘You know the bread you wanted me to pick up, well I don’t have enough money left to buy it.’
• Online purchases: ‘Can I use your credit card to buy these online games?’
• And the most urgent of them all: ‘I’ve run out of prepaid phone credit, can I use your card to top it up?’

It’s very convenient and easy to use your credit card for those emergency occasions. Every parent knows the persistence of pester power and its formidable persuasive properties.

And savvy teens understand how to get what they want by playing by family rules and saying just what you need to hear.

What are the dangers to letting your child borrow your credit card?

Don’t even think about lending your credit card to your children! Lending your credit card not only potentially creates long-term habits that encourage spontaneous spending, but it also comes with financial risks to you as:

• You have no control of your child’s spending which can lead to large, unauthorised credit card charges.
• You’ll be at risk of fraud as children are more likely to unknowingly use your credit card to purchase from a phishing site, disguised as a legitimate website.
• Defaults will affect your credit ratings, not theirs, as the card is in your name and you are ultimately responsible.
• Introduces your child to the undesired world of debt as a credit card which can be a complicated concept for young minds to grapple.

How parents can stay in control of their credit cards with ZAAP

Setting your children up with their own debit card can be a great way to get back in control of your kids using your credit card. This not only means they will have their own method of payment, but it will also help them become more financially independent.

However, setting up a debit card for your children can come with some restrictions. For example, to set up a debit card, your child needs to be 14 years or older. They’ll also need to provide a birth certificate or passport and complete a 100-point check.

With ZAAP, setting up an account for your child can be done in minutes. ZAAP is a prepaid card and / or wristband, supported by the ZAAP app, that allows parents to easily share funds with your kids. Deciding how much to load your child’s ZAAP account puts you in charge of the balance available to them and allows you to top up the account at your discretion, eliminating the need for you to lend your child your credit card.

The ZAAP app also gives children the opportunity to learn how to manage money in a safe and fun way. When your child needs funds in an emergency, it’s very easy to transfer funds from the ZAAP parent account to the child account.

In addition, you’ll have full visibility of your child’s spending through the ZAAP app, allowing you to help your child build good money habits. Plus, with merchant blocking in place, your child cannot use their ZAAP in liquor retailers, gambling, dating services etc, giving you peace of mind.

Why using ZAAP is better than lending your child your credit card

ZAAP makes money management easy

Be super-savvy and get a ZAAP pocket money card for your teenager without any risk to your credit rating. They can start to understand the responsibilities of managing money, a great learning for when they apply for a credit card in the future.

You can find out more information on the ZAAP pocket money app, and to order a ZAAP pocket money card or wristband here.