Teaching Your College Student About Credit

Uncategorized, credit

For many, a college student credit card will be the first step towards establishing a credit history. This will be a valuable experience that will benefit the rest of their lives. Unfortunately for others, it will simply be the beginning of a cycle of debt. The difference between the two is discipline and knowledge.

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Where is your college student going to learn the disciple and knowledge from? Probably not school. This is an area where the parents need to step up and teach there children what it is all about. Instead of shying away when they want to talk to you about credit and student credit cards, use this time to give them all the knowledge you can about it. When your child starts college they will more than likely start talking to you again. This is the time when they will realize there parents were not all that bad and probably do have something to offer them. Take advantage now.

You need to first of all teach them what a college student credit card can do for there future. This will probably be the start of there credit history. Explain what credit is and what it can do for them. Let them know that using there credit card with knowledge and discipline is the smart way to go. If they pay there bills every month on time and possibly even pay it off when ever possible how that will affect there credit history and score. This is huge. Using there new student credit card as an emergency tool is also very important. What good would there student credit card be if when they first got it, they charged it up to the max. When that emergency comes along they have nothing left on there student credit card for said emergency. Also when it comes time to pay the bill, will they have the money to do so? One more thing about charging it up to the max, that actually hurts there credit score. Make sure they know that.

Applying for a student credit card can be a good idea if the card is used as a tool – and used correctly. Take the opportunity to teach your children when every possible. You do not have to wait until they are in college to do this. My parents started talking to me when I was about 15 about the family finances and bills and such. I remember one month it was my responsibility to pay all the bills. Of course it was with there money. But I had access to what they made, what was in the bank and all the credit cards and had the responsibility of paying all the bills and making sure there was still money left over for groceries and such. It was a huge eye opener for me.

The point is your have a responsibility to teach your child about credit and how it can either work for you or against you. Take it seriously and show them what you know. They will be grateful to you for giving them some insight.

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Student credit cards.com @ December 24, 2008