More and more teens and college students have credit cards. Card companies target both groups because they are a fast-growing group with money to spend. While student cards are easy to get, the card companies commonly charge hefty fees and interest rates to teenage card-holders. Smaller credit limits are common with these cards.

People under the age of 18 are not legally allowed to obtain credit cards without their parents' consent. But younger children have filled out forms and received cards without their parents finding out. Talk to your child and help them understand that their first credit card provides an opportunity to begin building a solid credit history-something of major importance to their future.

Parents: Read the Fine Print with your Teenager
Parents should be sure to read all the terms with their children, especially with co-signed cards, because parents commonly come to the rescue if bills get out of control. If a young person has his or her own credit history, he or she may be able to qualify for a regular credit card and get a better deal.

Keep a Teenager out of Credit Trouble
Experts in debt and credit management strongly advise that students use the cards for emergencies only. The high fees and penalties can cause problems that stay around longer than the teen years. A credit card used by a teenager and paid for by a parent created bad credit habits.

Secured cards are an option for teens and students. Ask if your child's account can be linked to yours. You can keep refilling the teen's or student's accounts as they go along. This allows parents to keep track of their children's account activity, and limit spending.