Your child can have their own credit card at age 18 or 19, depending on the province. They should understand that, while they access their own money with a debit card, they borrow the bank’s money with a credit card.

Here are some key do’s and don’ts to let your child know about.

Do’s. Keep track of your credit card purchases and limit your spending to what you can cover each month. Pay each monthly bill in full and by the due date or you’ll be charged interest that’s typically a rate of about 20% (annual percentage rate).

Don’ts. Be sure not to view the credit card as found money or the limit as an allowable amount to reach. Don’t fall into the trap of only making the minimum monthly payment – this leads to a growing debt that becomes a challenge to pay off. Don’t use the credit card to withdraw cash − because interest charges begin that very date.

Emphasize that building good habits now pays off in the future. Getting into credit card debt can disrupt your financial life.