Op-ed: Your children should have credit cards, just like mine.

• Authorized users are typically issued credit cards when they are under 18 years old, but they cannot apply for their own credit cards.
• Adding your child as an authorized user on your credit cards can be a smart way to set them up for financial success.
• Giving kids spending power may seem scary, but it helps them learn to manage money responsibly while you can still monitor their activities.

I remember my first credit card.

When I was approximately 13 years old, my parents included me on their Visa Gold card.

My mom intended for me to use the emergency fund only in emergencies or with her permission. She believed it would assist me in times of need, but she was unaware that it also taught me how to manage credit at an early age.

Since kindergarten, my three kids, who are now 15, 12, and 10 years old, have had credit cards.

A 2019 CreditCards.com poll revealed that six million American parents have a credit card for their minor child.

Authorized users for bank cards can be children under 18, but they must be added to their parents' accounts. Some banks, such as Chase and Citi, do not have a minimum age requirement for authorized users, while others, such as American Express, require authorized users to be at least 13 years old.

Adding your child as an authorized user on your credit cards can be a smart way to set them up for financial success. Let's discuss the benefits of doing so.

Why your kid should be an authorized user

Adding your children to your account enables them to make purchases with the card, but you remain accountable for their spending. Although it may seem daunting to give kids that level of financial autonomy, it helps them develop responsible spending habits while you retain control and visibility over their activities.

I ensure the safety of my children's credit cards and have demonstrated to my teenage son how to securely store his cards on his Apple Pay phone.

I pay for my younger kids' school expenses, including PTA donations, tutoring costs, and teachers' gifts, by pulling out their credit cards at least once a year and even having them use it to buy items at the school book fair.

This task will help them develop responsible spending habits and proper credit card management skills.

Your child can learn how to manage their monthly spending balances and understand the accumulation of small purchases with your assistance.

Providing your child with a credit card can facilitate discussions about money management, budgeting, and credit history. However, not all cards report the activity of authorized user minors to credit bureaus.

Your credit card rewards will increase with their spending.

How to avoid authorized user pitfalls

Allowing your child to have their own credit card means you will have less control over their spending and must find a balance between trust and monitoring. If the child misuses the card, you could be responsible for a large bill and potentially damage your own credit score.

Here is how to navigate those risks:

Discuss with your kids the rules for using the card and the topics to cover.

• How much can they spend each month?
• What items are they allowed to buy and at which stores?
• Do they need to get your permission before each purchase?
• How will they pay off the balance at the end of each month?
• How long will they remain authorized users?
• What are the consequences if they violate your rules?

Having open, early, and comfortable conversations about money can help establish a healthy relationship with money for both you and your children.

You can add your child's name to a credit card account without them needing to use the authorized user credit card or possess it, as this can still help build their credit history.

It may only create credit profiles for them, rather than helping them build good credit habits or providing access to funds in an emergency.

To strike a balance between helping your child develop good habits and limiting your own credit exposure, you can request your credit card issuer to set lower credit limits on the authorized user cards.

Winnie Sun, co-founder and managing director of Irvine, California-based Sun Group Wealth Partners and a member of the CNBC Financial Advisor Council, discusses financial matters.