Lie #11: The debit card is more risky than a credit card.
More nonsense. Visa regulations require the member banks to give the Visa debit cards the exact same protections in case of theft or fraud as a regular Visa credit card.
Lie #12: If you pay off your credit card each month, you get to use somebody else's money for free.
That is a big, big rarity. First of all, a study by Dunn and Bradstreet stated that when you use a credit card, you normally spend 12 to 18 percent more than when you use cash. They make it sooo easy.
Then there are the people that tell you they are racking up airline miles, but Consumer Reports says that 75 percent of the airline miles are never redeemed. Most people let them expire because they can't afford to use them after pay all that interest to the lenders promoting them. Millionaires don't get rich by redeeming free air miles. They stay rich by not using credit cards and can therefore afford to buy their own airline tickets.
Lie #13: Getting your teenager a credit card will teach them to be responsible with money.
That is just plain irresponsible. The credit card companies have done such a great job of propaganda on this one that over 80 percent of college graduates have credit-card debt before they even have a job. That worked so well, that they started convincing teenagers that having their first credit card is part of becoming an adult.
When a parent gives their teenager a credit card, they are essentially endorsing its use without teaching them all of the problems it will cause them later in life. The best thing that a parent can teach their children is to say no to what they can't afford; to teach them the difference between needs and wants; and how to create a plan to save their money to get a better deal by paying cash. Give them the foundation they will need to combat all the peer pressure and marketing that is coming their way.