In previous years credit card
companies made college campuses a goldmine to find a large portion of new
credit cardholders. In 2009 the Credit
Card Accountability, Responsibility and Disclosure (CARD) Act helped to eliminate
credit card companies from offering multiple credit cards to students who have
limited to no income. This has
eliminated many students from becoming victims of overspending due to a lack of
financial understanding and knowledge. In the past the free giveaways for completing
applications such as t-shirts, pens and other gimmicky items lead to a future
of debt and poor FICO scores after the students received their cards.
It is part of a parent's and mentor's
responsibility to assist young adults in college to begin to navigate the complex
world of personal finances. If the
proper credit cards are chosen as well as responsible spendingguidelines followed
a student’s first card can be an asset and learning tool. Since there are so many different types of
cards with various rates and rewards it is important that you teach your
student what options would be the best choice for them. The lessons learned during a student's first
experience with a credit card will help to form their habits that will affect
their financial futures.
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