Introducing Kids To Award Travel
We get questions frequently in the ToP Facebook Group about introducing kids to award travel. How can we prep our children to be the next generation of award travel enthusiasts? What's the best route for the teen or young adult in your life? When should they open their first card—and what should it be? I’ll walk through the steps we followed in our own household to start our kids out on the path of financial wellbeing. Hopefully, that road is also paved with lots of award travel opportunities. Here's how to welcome a P3—and maybe even a P4 or P5—into the world of points and miles.
First Things First: The Most Important Rule in Award Travel
One very important part of the hobby that can’t be overstated: Develop solid financial habits. No amount of points earned will make up for paying interest. We call this rule #1 for a reason. We encourage you to really work through this concept with the young people in your life, so they understand the math behind it. Moving forward in this hobby quickly builds available credit. When introducing kids to award travel, maintain regular discussions with your young adult on how to use that newfound borrowing power responsibly.
Building a Credit Score
The first step for introducing kids to award travel—or any newcomer—is working on their credit score. This number influences what credit cards will be available, loan options, interest rates and so much more. I explained this to my daughter as a seed that needs nurturing—and constant attention. Watching it grow can be exciting, but forgetting to water it can lead to a messy garden.
Add an Authorized User Card (or 2)
When someone is added as an authorized user to an existing account, that account's age, payment history and available credit all get attached to the new user's own credit profile.
Credit scores are not reported under the age of 18. For this reason, there isn’t a big hurry to add your child much earlier than that milestone birthday. Different banks have different requirements for the minimum age to add them to your account. Adding them at 13 vs. 18 doesn’t make a difference in the big picture, as the credit data will be tied to the primary account holder's history either way. If part of your reason for adding your child as an authorized user is to teach responsible credit management or to give them a card for emergencies, then there may be a personal benefit to adding them earlier. Just know that this timeline does not impact their score directly until they are 18.
Be sure to note American Express' rules. This bank will report an authorized user account from when it is added, not when the primary account was opened. For this reason, Amex is not considered a ToP option for this purpose. Your child will not receive the benefit of the account age—and it can hog a valuable 5/24 spot.
When our children were nearing their 18th birthdays, we added them as authorized users to two of our oldest accounts. These cards have no annual fees and fairly large credit limits. We put their authorized user cards in our safe, and they haven’t used them since. When our children turned 18, their credit scores received an automatic boost tied to the authorized user cards. The credit history is nearly as old as they are (and it can even be older). I made sure to use our own “anchor cards” for this purpose, as we have no plans to ever close them.
What Is an Anchor Card?
One important factor in anyone’s score is credit age. We always stress never to close your oldest card, as this anchors your credit history. That first card holds an important piece of your financial picture, and contributes to your credit score for years to come.
Choosing an Anchor Card: Key Considerations
Now that your kids have turned 18 and benefited from your credit history to get them started, it’s time to secure their own anchor card. While they may show a higher credit score than their peers due to the authorized user accounts, they still have a “thin” credit profile by industry standards. Adding their own anchor card helps to build their individual history.
1. This anchor card needs to stay open indefinitely.
This should immediately remove any card options that include an annual fee. We encourage evaluating all cards annually before paying the fee. You want to ensure this first card doesn’t become a burden in the future as your child's needs change.
2. Even if your young adult shows a great score immediately out of the gate, that doesn’t mean they have their own credit history.
Many banks recognize the difference between authorized user accounts contributing to a score and an individual showing their own ability to use credit responsibly. Some banks are much more likely to approve with a shallow or thin credit file. What bank is more likely to approve them? We have a great list of starter cards here. Another option you can consider is a local bank or credit union. Avoid cards marketed as credit-building, or secured, as these often come with elevated fees, restrictions or startup costs.
3. No, you don’t want an award card to start.
Look outside of the hobby for this first card for several reasons. Many of our favorite banks, such as Chase and Capital One, have card limits or application rules. The last thing you want to do is give up a valuable space at a bank in the award travel ecosystem to a card that isn’t earning a big bonus. Remember, this card needs to stay open indefinitely. If a bank will only allow you so many cards, would you want to give up that space to a card that doesn’t make sense longterm?
This is your young person's first real-world experience with credit. While we are all well-intentioned, it's also easy to get in over their heads. Banks have long memories, so it's best to ride with training wheels for a bit before cruising with no hands. Staying outside the hobby protects future relationships if, for some reason, something goes wrong or the account is closed.
One of the best things about a multiplayer household is the opportunity to earn referrals. Some banks limit referrals to the first card or account opened. When introducing kids to award travel, don't waste that opportunity on a card that doesn’t benefit both sides as much as possible.
Now, The Hard Part: The Wait
After your youngster has acquired their anchor card, the next step takes time. They are now building their own independent history/usage, and this does not happen overnight. Most banks in the award travel space prefer about 12 months of personal credit history. This incubation period is an excellent moment to build those management skills, though. Learn about statements, closing dates and how payments work. Use this new card regularly, with the statements closing with small balances of less than 30%. They'll see that paying the statement balance in full on or before the due date prevents any interest or fees.
This is also an important time to learn and practice restraint, as their newfound score will undoubtedly lead to offers while shopping, in the mailbox and online. Our P3 was shopping at TJMaxx one day and encouraged to sign up for their rewards program, only to find out afterward that it was, in fact, a credit card (and took a valuable 5/24 spot). These are excellent teaching moments, and having that 12-month timeframe to work through can really benefit their credit journey in the long run.
We also used this time to explain business credit cards and how nearly everyone has some type of business activity. Our daughter opted to sign up as a DoorDash driver for some extra cash during this time, which simultaneously set a foundation for future applications.
Bonus tip
When introducing kids to award travel, consider inviting your young adult to the ToP Facebook group so that they can begin learning the ins and outs of award travel. Studying up when the stakes are low sets them up to be the family points guru by the time they are ready to book that first award trip. They can also subscribe to our newsletter, or follow us on other channels such as Instagram, X and Threads.
Now What? It's Go Time
Congrats on helping your young person build good financial habits! You've set them up early in life with a credit score that rivals that of most adults twice their age. It’s time to get them started with their first award travel card!
Due to the CARD Act of 2009, young adults between the ages of 18 and 21 are also required to use their own income for credit card applications. (Unless they have a cosigner, but many banks don't issue co-signed credit card accounts.) So while they may still live in your household, they are not able to include household income while under 21.
When applying for a card, make sure to include:
- Wages from any employment or work-study income (including part-time or seasonal work)
- Freelance or gig income
- Regular allowances from family
- Scholarship or financial aid funds that remain after paying tuition and eligible college expenses
- Investment income
Many young people don’t have the required spend to open some of the more lucrative offers. We have helped our children with spend requirements on cards that may be out of reach. Introducing kids to award travel can often be helpful in gathering rewards that benefit the entire family, and lead to lucrative referral bonuses.
We recommend that nearly everyone get started in the hobby with either the Chase Sapphire Preferred or the Chase Sapphire Reserve. Since the minimum credit limit for the Reserve is $10,000, the Preferred may be an easier option for someone with limited income or a new credit score. Make sure to send your young adult a referral for this first award card for some extra family points. The Chase Sapphire Preferred was the first card I personally referred our daughter for after completing the steps above. Shortly after approval for her first travel card, she also opened her very first business card, the Chase Ink Business Preferred.
Introducing Kids To Award Travel: ToP Thoughts
Before her 21st birthday, our young adult was using her own points to travel around the globe on an adventure I would only have dreamed of at that age. We now have a full-fledged P3 earning and redeeming her own points, and contributing to family travel as well. Being intentional with the steps and building a solid credit foundation will continue to serve her for years to come. Because after all, it's really all about getting them started on a pathway to becoming their own P1—and that is a powerful place to be. What step are you on in the process of introducing kids to award travel? Let us know over in the ToP Facebook Group.
