FinanceSpectrum.com Advises Parents and College Students about Credit Card Offers
Los Angeles, CA (PRWEB) July 30, 2013 -- FinanceSpectrum.com online financial advice column today issued their observations regarding credit card companies’ aggressive advertising attempts to get college-aged kids to sign up for their lines of credit. FinanceSpectrum.com dished out advice to parents, about how to properly prepare their kids for the onslaught and how to especially prep them for the responsibility of having a credit card.
According to a July 8th article in the San Luis Obispo Tribune by Steve Rosen, his mailbox is drowning in credit card applications addressed to his college student son. Rosen reported that he gets at least one application in the mail each day, prompting him to advise parents to tread carefully with a college-aged son or daughter who is wanting to take advantage of one of these many offers.
FinanceSpectrum.com believes that the key to college students being responsible with a credit card is the skills, knowledge, and practice that were instilled in them at home. FinanceSpectrum.com is quoted as saying, “They say you can never start discussing finances with your kids too young, and that’s pretty accurate. It just seems like time flies by, and before you know it your kid has gone from eating Gerber baby food and trying to stick things in sockets, to raising their own babies and trying to protect their kids by baby proofing their own house. My point is that kids grow up fast, and your high-schooler will be out the door, headed towards college—and the real world—before you know it. Better that they leave home with a good sense of the financial world about to unfold before them, rather than be blindsided by it. Don’t miss out on the opportunity to impart knowledge to your kids about budgeting, credit, and credit cards while you’ve got the chance.”
The above-mentioned Tribune article recommends that parents consider getting a credit card for their college students for emergencies only, and that they also take into consideration whether their son or daughter has handled debit or cash responsibly in the past to determine how good they might do with a credit card. Rosen points out that parents should also be cautious about co-signing for a credit card application, because their credit score could be negatively affected if their cardholder son or daughter falls behind on payments. Rosen stressed the importance of finding a no-fee credit card with a fairly low credit limit for a newcomer into the credit world.
FinanceSpectrum.com offered their own tips to parents about how to broach the subject with their teens before the credit card offers begin rolling in. FinanceSpectrum.com is quoted as saying, “We like the idea of getting your kids familiar with credit card terms before they have a piece of plastic of their own. Explain to them what APR means, as well as interest, late payments, credit limit, and of course how paying late or using too much credit could really hurt their credit score. If they aren’t familiar with what a credit score is used for, or how it works, that would be a good thing to review as well. And lastly, I always recommend this strongly to every individual no matter who you are or what your personal finances look like: a budget can only help your financial situation. So for your college student, it might be worthwhile to make a mock budget of what they’ll be financially responsible for once they go off to school, so they can see how they ought to allocate funds each month. Then, they’ll have something already in place to use as a guide once they leave the house.”
About FinanceSpectrum.com :
FinanceSpectrum.com is an online financial magazine that reports on a broad range of financial topics for the benefit of middle-class Americans who look to them for guidance. FinanceSpectrum.com enjoys providing financial assistance to readers by offering tips and information on subjects like budgeting, credit, retirement planning, moving, traveling, personal finance, and money management.
http://financespectrum.com, Finance Spectrum, 3479030160, [email protected]
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