Didn’t Financial Institutions Learn Their Lesson Yet?
Isn’t it crazy how credit card companies target vulnerable people? The other day, I was stunned to find a credit card offer in the mail addressed to my nine-year-old daughter. I have no idea how they got her information since everything she’s signed up for is under mine or my wife’s name and email.
Naturally, my protective instincts kicked in, so I called the credit card company right away. Thankfully, they quickly realized their mistake when I told them her age. They apologized and removed her from their list for future offers. However, the service rep couldn’t explain how her name ended up on their list in the first place.
At least her credit card offer wasn’t pre-approved—that would have been ridiculous. Her only income right now is her bi-weekly allowance from chores.
We’re not the only family this has happened to. Other parents have also been shocked to see their kids receive credit card offers. In some cases, it might even indicate identity theft!
Clearly, there’s a problem with the system. Everyone knows credit card companies aggressively target college students and young adults, who are more likely to rack up large balances, allowing the companies to collect hefty interest fees.
After the Great Recession of 2008, you’d think they’d be more careful. Instead of sending out random credit card offers to everyone, there should be some standards in place to filter out ineligible people, like nine-year-olds. Maybe I’m expecting too much.
Luckily, I’ve never had issues with credit cards, thanks to my Dad teaching me at 18 how quickly interest can compound into an unmanageable amount. I’ve always followed two simple rules:
1) Never buy anything I couldn’t pay for with cash.
2) Pay off my balance in full every month.
This strategy has turned years of purchases into a growing collection of credit card rewards, amounting to over $1,000 this year. When used correctly, credit cards can be very convenient.
But what about kids and young adults who don’t have someone to guide them? Many young adults are eager to prove their independence and may not seek advice on such commitments. The consequences can be severe and long-lasting.
As stewards of financial knowledge, it’s our responsibility to protect those we know from these traps. While we can’t stop marketers from sending mail or advertising, we can equip our children, nieces, and nephews with the information they need to make smart choices. Even if we don’t tell them directly, we should let them know they can come to us for advice.
For now, I hope I don’t see another credit card offer for my nine-year-old daughter. Papa Bear is on the lookout!
Readers – Has anyone else’s child received a credit card offer at a ridiculously young age?