Student Credit Cards Are Vital to Teaching Good Money Management Skills
View PDF | Print View
by: barrywaters
Total views: 84
Word Count: 411
Good credit is one of the most important things a student needs to make their entrance into adulthood after graduation, and student credit cards can help young adults establish a good credit record while still in school. A good credit records goes a long way when that student rents an apartment or purchases a new car, and may even help obtain a more favorable insurance premium.
Good credit management is a lifelong skill best developed early on rather than when it is too late. Student credit cards can provide parents with an excellent teaching tool. With a student credit card, your young adult can learn how to budget by having to set aside money each month to pay the bill. He or she will also learn, hopefully not the hard way, about interest and how quickly it and late fees can accumulate if bills are ignored.
Smart parents of a college student set limits on their childs student credit card use. The credit limit should be kept low as a way to discourage binge spending and develop responsible spending habits. The student away at school will learn quickly that it is far better to save the credit card for necessary purchases such as books and school supplies rather than squander the entire card limit on frivolous expenditures. The credit limit issue can be revisited and perhaps revised once the student has demonstrated responsible credit behavior and developed good payment habits. Students should also be introduced to the concept of online student credit card payments. Since our society grows more technology driven by the day, all bill payments will eventually be made online and students should be prepared for that. The most desirable student credit card package will have no annual fee, zero percent introductory interest rate and cash back rewards to reinforce good credit practices.
There is no reason for parents to be leery of introducing their college age children to student credit cards. In reality, they would be doing their children a great disservice by shielding them from the reality of financial responsibility. Children need basic financial management skills and a good credit history in order to succeed in our financially driven world. Insurance companies, financial institutions, landlords and employers all use credit scores to determine whether an individual would make a good credit risk. Give your child the benefit of a sound financial education before it is too late.
About the Author
Learn the real scoop on credit cards for bad credit, review a cool site.
Rating: Not yet rated