s your son or daughter child how to handle a credit
heads off to college, there card.
are a lot of things that
they will be learning about—and Credit cards aren’t a bad thing
managing their finances is one
lesson that needs to be taught While it might seem like a simple
before they pack their bags. solution to forbid credit cards
entirely, this can also be an
How students get into trouble opportunity to teach your child
how to handle their money. Start
When college students are first by applying for cards with both
living on their own, there is a of your names on it and with a
lot of freedom that they are low limit. This allows both of
enjoying and learning to handle. you to have access to the card
They are flooded with credit card while also giving you a statement
offers on campus that come with each month to see what the child
free t-shirts or CDs. And they is spending money on.
think that a credit card is no
big deal and something that will Budget out a limit for each month
help them get the things that and then have your child pay that
they want. off or make it clear that they
will pay it off during the
Unfortunately, credit card following summer. This can teach
companies realize that college a college student not to pay for
students aren’t all that things that they can not afford.
knowledgeable about credit cards
and capitalize on that, causing The best card will do this
thousands of dollars in debt
outside of school loans. But The best student credit card will
there are ways to teach your have a low limit that your child
will need to watch in order to repaid.
stay in a good credit standing.
And they can use it to buy their The best student credit card will
school books safer than they also allow the student to gain
could with cash. rewards for their purchase,
perhaps cash back or gas money
And for emergencies, the card can for trips back home. even though
be used to cover unexpected they won’t be spending a lot on
costs, but only when you have the card, it can help to see how
gone through a repayment plan to credit cards can be used
help them learn that money that responsibly.
is spent on a card needs to be
About the Author:
Beth Derkowitz recommends Find Credit Cards for finding the best student credit card for you. See http://www.findcreditcards.org/type/student.php for more information.
