Your teen is about to go away to college, to learn, to grow... and to be inundated with offers for student credit cards. This is no minor nuisance. Credit card companies target college campuses, courting students with freebies and attractive promotional offers that might not be so attractive six months down the line. Theyre wildly successful: A study done in New York state found that the average student left school with four credit cards and over three thousand dollars in debt. How can you prevent this from happening to your own son or daughter?
* Teach them to be suspicious of appeals to their vanity. Student credit cards offers come emblazoned with messages like, "A special offer just for you!", "Exclusive," and "For select customers." The offers are really "exclusive" to a small, hand picked group consisting of every student the credit card company could find, but no one would know that without being told. Nor are the "special" offers very special. Learning to carefully evaluate any credit card offer that uses flattery is key to avoiding bad student credit card offers.
* Teach them how to read the fine print. Credit card issuers hide the details of student credit cards terms in blocks of minute print or in long, bewildering tables, couched in jargon as dry and obscure as possible. Knowing what the terms mean and how to wade through the fine print to find the information they need is a valuable skill that will allow them to choose a credit card wisely.
* Teach them to evaluate special offers. Sparkly new 0% interest rates vanish after six months, but unless you know to read carefully, you might think you were set for free credit for life. Teach your teenager to look deeper whenever an offer seems too good to be true, and show them where the details and disclaimers are hidden.
* Show them that something isnt a bargain if they dont need it. Its human nature to jump on a deal. But its not good financial sense. Teach your son or daughter by example that buying only what you need, not what you think you might need or what might come in handy at some point in the far future, is the best way to manage money. This will not only help them to avoid bad student credit cards offers, it will dramatically reduce the amount of debt they accumulate in college.
Sit down with your teen and a stack of offers for student credit cards, and help them pick out their first card. Theyre guaranteed to roll their eyes, but the financial lessons you can teach them will stick with them forever. And when they graduate with a strong credit rating and no credit card debt, ready to take on the world, theyll thank you. Articles Best credit cards Credit cards Best credit cards