Nowadays, almost all parents have started providing their children with student credit cards or companion credit cards almost as soon as they are old enough to be eligible for one. However, a child reaching a certain age does not mean that he or she has automatically become responsible enough to handle money sensibly, and a lot of young credit card holders end up making huge financial mistakes. Therefore, it is important that parents educate their children about responsibly using a credit card before arranging one for them. Some of the most important things that you should take care of before handing your child a credit card are as follows: 

• Make your child aware of all the rules of using a credit card properly. A student credit card holder should be aware of the rules of usage of his or her credit card, the credit limit, the rate of interest and the credit card fees.
•  Student credit card holders should also be taught the rules of repayment of credit card balances and should be told about why it is important to pay the full amount due on a credit card and why it should be paid on time.
•  Most importantly, it is important that a child carrying a student credit card does not exceed the credit limit. It is advised that you provide your child with a maximum credit limit of a thousand dollars till he or she gets the hang of using a credit card responsibly.