College is the first taste of the real world that young people get while still being protected by something that looks out for them. Most young people move away to college and even though they are still being funded by mom and dad they are given the feeling of what it is like, for the first time, to not answer to someone for everything they do. That first feeling of independence is great but also very intimidating.
As college students begin to make their own decisions about money, they are frequently presented with credit card applications. This is because credit card companies make a special effort to get college students without jobs to open accounts. Parents, though, can help their children at college to stay out of credit card debt by making sure their children understand the disastrous consequences they will experience later in life if they allow themselves to get buried in debt at a young age.
The first angle to control college students and credit card debt is education. Talk with your student and explain how the mixture of college students and credit card debt can get out of control but most importantly explain to them what happens when you ruin your credit at a very young age.
Causing damage to your credit at such a young age will make renting an apartment or getting a home loan extremely difficult. Some college students rack up so much debt that they are still trying to pay off debt from their college years when they are in their thirties. Understanding the dangers and consequences of getting into debt at a young age is a big deterrent.
Offering Your Assistance
Parents can offer assistance to their college aged students by giving them access to a credit card that's spending limits can be controlled by the parents. This approach works well because, one way or another, college students will need to have a source of money to turn to if a situation arises in which they need to make an expensive purchase.
If you choose to give your college aged children a credit card where you set the limit, you need to make sure that there will always be fund available to them on it. Doing this will also help you to know what they are using their credit card to pay for when you receive the statement each month.
All you can do is prepare them with some support and education. If they choose to do their own thing there really isn't anything you can do about it. But at least you can feel better knowing you tried everything a parent can do to help out with college students and credit card debt.
About the Author:
Before considering consolidation as a way to get your debt paid off, research the debt consolidation loan consequences. It isn't always a good idea to consolidate your debt. Find out why on the Inside Debt Consolidation website
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1 comments:
The college student needs to be included in the financial discussions about college debt. this keeps them involved and gives them ownership. If the debt is invisible to them, they do not realize the consequences of some of their actions. Delaying graduation by changing majors, changing schools or taking a light course load can have a major affect on the college debt. Using the summers to work for pocket money or staying in school so they graduate on time or early are good options. For a FREE eBook, "Parenting College Students: 27 Winning Strategies for Success" go to www.CollegeWorks101.com
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