As you send your children off to college have you prepared them for the credit card offers that they will begin to receive? Have you taught them the dangers of opening multitudes of credit cards and charging up the balances? Have you done everything you can to prepare your children for the financial responsibility that comes with adulthood?
Even if you plan on paying all of your child’s expenses for college, you should take the time to warn them about the dangers of credit card use. Often college freshman will open up a credit card, and never tell their parents. It is one of the first acts of declaring financial independence. Many will apply for the credit cards for the free gifts that are offered just for applying. These can range from a free pizza to a free T-shirt.
Many people look at the lessons learned from irresponsible credit card use as a right of passage. It is simply what every college freshman goes through. You apply for a few cards, max them out, and then find yourself struggling to make the payments. If you are lucky, this isn’t more than a few thousand dollars. If your not it could be several thousand. Others do not learn in the first year, and begin to pay off cards with other cards, and create an even bigger hole.
In fact, many people graduate from college with no credit card debt. It is possible to plan, budget and act responsibly from a young age. The most important factor in determining this is the level of understanding that each individual has of the risks involved in credit card debt. One or two conversations about the dangers of credit card debt can easily affect the choices that your children make. You talk to your children about the importance of responsible behavior in other areas of their lives; you should include financial responsibility as well.
Related Articles:
Teaching Teens About Commitments to Contracts
Teaching Teens to Balance a Checkbook