Credit cards can easily lead anyone in debt and that has to be averted at all cost. This is where smart parenting comes in.
Miami, FL (PRWEB) August 15, 2013
Debt Consolidation USA, an online resource for debt relief information releases a timely article that is aimed at parents of incoming college students. The article was published on August 12, a few weeks before classes are to start. The debt relief company believes that college is when a growing child experiences their first taste of independence. Because of this, parents are usually scrambling to help equip their children with the right skills, tools and knowledge to help them in their day to day struggles while away from home.
The article entitled, “How To Introduce Credit Cards To Your College Student,” seeks to provide parents with the information that will help them make responsible credit card holders out of their kids. The debt relief website acknowledges that financial management is one of the toughest lessons to teach and using credit cards to do so can be a real challenge. Credit cards can easily lead anyone in debt and that has to be averted at all cost. This is where smart parenting comes in.
The article provides the following lessons that should be imparted on college students with regards to credit cards and their proper use.
1. It is a debt that will have to be paid. The money used in credit card purchases is owned by the creditor.
2. Credit card purchases must be part of a budget. If it is not planned, it should not be bought. This will help the student control credit card spending to keep it from going out of control.
3. Card balance must be paid within the grace period. This is the time between the date of purchase and the due date of the billing statement where it is included. If paid during this time, the consumer will not have to worry about the interest rate.
The article also discusses why a credit card can prove to be useful in the life of a college student. First of all, credit cards can help them build up their credit history. This will enable them to get a credit score that in turn, will open up a lot of financial opportunities. However, this will only end well if the student learns how to use their credit card wisely.
Another benefit that the article provides is that credit cards protect cash from theft. Knowing how college students can get a bit excited, they are more susceptible to lose cash - especially if they did not earn it and was just sent by their hard working parents. The credit card statement also allows monitoring of the credit card charges - to watch out for any incorrect data.
The article also acknowledges that there are certain transactions that cannot be done without a credit card. Debt Consolidation USA admits that credit cards are dangerous but with the right knowledge and spending practices, consumers can really benefit from this card.
To read the whole article, visit http://www.debtconsolidationusa.com/creditcarddebt/how-to-introduce-credit-cards-to-your-college-student.html.