Do Your Homework: Student Credit Cards (cont.)
Contributed by Caryn e Zent
Student Credit Cards: The Early Years
Middle School: parents, begin teaching your children about interest and budgeting. Help them understand spending limits, which will later help them understand credit spending. They are ready to be given money and budgeting its spending, such as for school supplies. When the money is done, so are they. Remember your children will be watching your spending as well, so parents should be a good example.
High School: Think about a student checking account, which will be a practical exercise in actually managing money. You can later consider adding a debit card or prepaid credit card to their financial portfolio, such as it is. The statements will also help parents evaluate where and how their child is spending money.
Student Credit Cards: I'm in College!
Believe it or not, it is easier for a student to obtain credit than a graduate. Parents are more likely to bail out a student than a graduate. Now is a good time to encourage your student to apply for a card in his or her own name, without a co-signor. From what they've learned, they will hopefully use their credit sparingly and pay their bills on time. They should know how expensive it will become to only pay their minimum payment each month. With all the expertise you have shared with them over the years, they will do great!
