A credit card can be a very useful tool, but it can also be dangerous. Some kids get credit cards to use in emergencies, such as a car breakdown far from home. They can certainly be helpful—but you need to learn how expensive credit cards are if you use them for everyday purchases. These resources will help you comprehend the high cost of credit card use:

• The True Cost of Credit: This article outlines how much a large purchase will cost by the time it is paid off.
• What Do Credit Cards Really Cost? This site shows how expensive a small purchase becomes when you pay for it with a credit card.

If you have a credit card, use it sparingly. Keep in mind, however, that you can, and probably should, use one to start building your credit score. If you are going to have a credit card, make sure you use it wisely.

When the time comes to buy your first car, use some common sense. It may be fun to drive the hottest new sports car, but you need a vehicle you can use to drive to and from college or work, which means you need something that gets good gas mileage. You also do not want to spend your entire paycheck on your car payments. Save some money first, and either pay for your first car in cash or put a tremendous down payment on it. Avoid buying a brand-new car, because it will lose value the moment you drive it off the lot. For more information about buying a car, visit these links:

• First Time Car Buying Tips for Teens: Advice for teenagers and other young first-time car buyers.
• How Much Can You Afford? Tips for deciding how much to spend on your first car.
• 10 Steps to Finding the Right Car for You: A guide from Edmunds.com for first-time car buyers.
• Used Car Buying Guide for Teen agers: Help for finding a good used car.

You have money and other people want it. If you aren't careful with your money, you may be scammed out of it. There are several common online scams to watch for, so do your homework before you spend money online. Start with these resources:

• Scambusters.org: A good site to search if you think you are looking at a scam.
• Snopes.com: A site you can use to find out if something you read online is true.
• Internet Safety: A guide from Surfing the Net With Kids.
• Common Internet Scams: A guide from Hoax-Slayer.

Identity thieves are experts at finding the information you post online. Never give out your bank account number, credit card information, or Social Security number on an online forum unless you are sure it is secure. Learn all you can about Internet security by visiting these sites:

• Staying Safe Online: Resources for helping kids and adults avoid Internet dangers, both to their personal and their financial information.
• Internet Security Overview: A technical guide to keeping your computer secure.
• Fighting Back Against Identity Theft: A guide from the Federal Trade Commission.
• Tips for Avoiding Identity Theft: Advice about identity theft aimed at Internet users.

Spending money is easy, and many people spend more than they have from the moment they start making money. To avoid falling into the debt trap, learn how to budget now with your first job. A simple budget compares your expenses with your income, and makes a plan to pay for your expenses. Be sure to plan for extra spending money and for savings. Check out these resources to help you make a budget:

• Budgeting 101: Everything you should know about setting up a budget.
• How to Teach Teens to Budget Money: A step-by-step guide to budgeting geared toward parents of teens.
• Top 10 Budgeting Basics for Teens: A useful guide to teaching teens how to budget.
• Teens on a Budget: A short article that contains budgeting tips.

By using your money carefully and avoiding the debt trap, you can start saving now for a large purchase—or for your college expenses. Even as a teenager or young adult, you can and should start making good choices with your money.