If you have an 18 year old child, odds are by now, countless credit card offers are starting to drop in the mail addressed to your son or daughter. This is usually a good indication to sit down and speak to your child about the how's and why's of owning a credit card.

Understandably, parents may feel afraid and a little skeptical about the prospect of giving their child this big of a financial responsibility. But remind yourself of the importance of letting your child build a good credit history and in turn develop great financial management skills, instead of focusing on the negatives and shielding them away from the situation altogether.

Some helpful ways to assist your child to understand the basics of credit card management include:

1. Start early. Giving your child that financial responsibility of owning a credit card while on your watch is a great first step both for you as a parent, and more importantly for your child. This allows you to step in if a problem arises and help with the balancing of accounts along the way.

2. Start with a lower credit limit. Choose a card with a lower credit limit (some offer as low as $300) to provide an upstart and train your child into becoming a more responsible credit card user. This will discourage any unnecessary spending beyond their means.

3. Reiterate the need to pay off the balance in full each month. Starting out with a lower credit limit means that your child will be able to pay the account in full per month. A degree of shock is usually inevitable with first-time card users who lose track in the amount of accumulated monthly statement balance. Practicing to keep track of purchases, either mentally or by jotting it down, is also an important exercise. Knowledge of the importance of paying the balance in full forgoes large interest fees and other additional charges.

4. Go over the credit card statement together. Explain the concept behind terms such as finance charges, annual percentage rates, grace periods and reward schemes.

5. Account information is also available online. College students may be too busy to go to the physical branch of the company and ask for a credit statement or pay for monthly dues. Online payment of the credit card balance can be made through the internet to allow timely payment.

6. Set rules and re-establish them from time to time. Your child may think that he already knows everything that needs to be known when acquiring a credit card, but that can easily change when the plastic is handed to them. Discuss the importance of responsible spending, what and what not to buy and using cash for small purchases rather than the card. Frequent small swipes can easily balloon into a large accumulated amount more than what was expected.

A little guidance can go a long way to help your child learn financial sense early in life. Not only will this build up a good credit history, but also it will develop numerous traits that will aid him in this financially driven world.