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Teens can, and should carry credit cards - but only with proper parent/guardian supervision. By letting your teen have a low credit limit card and working with him or her each month to plan purchases and budget payments, you're setting your child up for sound money-management throughout life. Remember, you'll have to co-sign for a teen card, so a slip-up from your child will be a blot on your own credit scores.

College students should fall into the same category. While many are earning their own money and paying their own bills, this is not a time to run up large debts. College loans are enough to deal with when young people begin their working lives. Keep the credit limit high enough to purchase an emergency necessity - such as a textbook that a professor suddenly requires - but low enough to pay off without spiraling into long-term credit card debt. Twenty and thirty-somethings should use credit cards to build a solid credit reputation. By using their cards sparingly and paying the balance promptly, their credit scores will build - putting them in a good position for a low-interest home loan.

This is a time when you may be tempted to splurge on a luxury you really can't afford - because you can put it on the credit card. Resist. You really don't NEED that fancy stereo system or tickets to that $200 concert. Paying interest on them makes them even less affordable. Wait until you've gathered the money, then see if the trade off between having the money and having the item really makes it worthwhile.

If you're running a business of your own, or if you are reimbursed by an employer for gasoline or entertainment purchases, your credit card can be an invaluable record-keeping tool. Look for a card that gives cash back on the purchases you make most often, then pay the balance in full each month to avoid interest charges. Shun the cards with airline miles unless you really do travel a lot.

During your 40's and 50's you should continue to use your cards for record-keeping, and continue paying the balance in full if at all possible. During these years when travel is a favored pastime, using your card can save you money on foreign exchange rates - so be sure to take at least 2 cards along on vacation. And of course, look for a card that gives you cash back - or airline miles if you travel a great deal. Credit card use among seniors has soared in recent years - primarily as a result of rising health-care costs. If you're finding yourself taking on more and more debt, it might be time to look into alternatives such as a reverse mortgage. For those seniors who remain affluent, using credit cards for travel and bookkeeping is still the wise choice.

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