Student Credit Cards Are Invaluable Teaching Tools
View PDF | Print View
by: barrywaters
Total views: 90
Word Count: 438
Good credit is vitally important to the college student on the verge of making an entrance into adulthood, and student credit cards can be a valuable partner in making that entrance a financially successful one. That good credit record will make it much easier for them to rent an apartment and purchase a new car and may even qualify them for a lower insurance premium.
It is best to teach good credit management 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 first limitation should be on the credit limit 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. Parents can revisit the credit limit issue once the student has demonstrated responsible use of a credit card and developed a good payment history. Students should also be introduced to the concept of online student credit card payments. Eventually all payments will be made online, so prudence dictates that the skill be taught sooner rather than later. The best type of student credit card will have no annual fee, a zero percent introductory interest rate and cash back incentives to teach the young adult the value of good credit practices.
Parents should not be afraid to introduce their college age children to the concept of 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, potential landlords and employers all turn to credit scores to determine whether an applicant would make a good risk. Give your child the gift of a sound financial education before it is time for them to go out into the world on their own. More Reading Bad credit credit cards | Secured credit cards | Secured credit cards |
About the Author
More information about student credit cards, visit getsmart.com/credit-cards.
Rating: Not yet rated