Families · August 21, 2025
Understanding the risks of debt: what teens need to know about credit cards
By Connie L. Oakes, owner of Oakes Tax Service, LLC and Financial Solutions
Credit cards can be a useful financial tool. Without education, they become a trap. For teenagers just beginning their financial life, understanding the risk of debt is essential to building a future that is not owned by interest.
The hidden cost of a balance
Cards offer convenience. They also come with interest, fees, and the temptation to spend beyond your means. Many young adults fall into making minimum payments without seeing how fast the balance grows.
Imagine a $100 pair of shoes on sale for $75, charged to a card and not paid off that month. With interest, that “sale” can cost $85, $95, or more. A discount is not a deal if you are paying interest on it.
Three questions before a swipe
Do I really need this item? Can I afford to pay it off this month? Is this purchase worth the potential interest?
At Oakes Tax Service we believe financial literacy starts with honest conversations. Have this one at the kitchen table, before the card is in a wallet.