Bangalore: With the cost of living getting so high-priced most of the kids watch their parents using a small card to buy things. They notice how the card helps them make all big and small purchase. For kids this is magic! And as these kids progress in life and travel on the path to college, credit card becomes a part and parcel of their life. For parents, apart from their teenager with car keys, the next most frightening experience for them is their child possessing credit card. If parents assume that their kids would graduate from high school with some basic financial literacy skills, the let me tell this is not the case. Having a card for the first time, they will be tempted by the lure of the seemingly free money offered by credit cards. It is a well known fact that credit card debt among college students has been steadily on the rise, so educating children about financial management in general and credit cards in particular remains the responsibility of parents. Here is how parents can teach kids about managing credit cards. Give Some Allowance It's never too early to teach children about credit. Start by giving your kids a small weekly allowance. This will teach them to save for things that they want to buy. They get this sense of responsibility. Initially keep the allowance small. This is also a good time to explain about saving money to a child. When your kids get to be young teens, change the cash allowance into a prepaid credit card. By putting part of the allowance in a bank account, let you child know that he or she will be earning interest that helps their savings to grow.