Keeping Your College Student Out Of Debt
As a new school year approaches, many young adults are heading off to college for the first time.
Armed with many new responsibilities, these young adults have much to learn about their futures.
Sadly, it has been reported that financial literacy is declining with each generation.
This suggests that as our children grow up and go off to college, they haven't been adequately trained on good money management skills.
Many college students fall into the trap of credit card debt before the end of their first year.
Along with student loans, credit cards are quickly becoming the largest source of debt among Americans under the age of 25.
Fortunately, there are a few ways to protect your college student's credit while allowing them to learn how to responsibly manage a line of credit.
Teaching Tools There are numerous tools available to help your son or daughter learn to use credit wisely.
Before allowing your them to apply for a loan have them participate in a credit counseling course.
These courses are a required part of the bankruptcy process, but have highly valuable information for people in all financial situations.
A credit counseling course overs how to create a budget, money management strategies and how to use credit responsibly.
Typically, a credit counseling course is offer for around $30-$60 and last around 90 minutes.
That is 90 minutes of information that can change the financial future of your son or daughter.
With the advances in technology, comes smarter ways to manage your money.
There are many online tools available to help anyone create and manage a budget, which even sends alerts when they approach their budget limit.
Many new smartphones have applications that can be purchased or downloaded from their banks software as an additional tool for keeping track of their money.
Knowing when their money is low can prevent the misuse of a credit card on non-essential items.
Setting Rules As a parent, you may have to co-sign on a credit card for your son or daughter.
Taking on such a great responsibility requires your participation in the entire process.
Don't just give your child a credit card and say "good luck", instead make the credit card a source of monthly discussion.
Before your college student applies for the card, sit down and make a list of spending rules for the card.
List what items or activities are acceptable for purchase with a credit card, and which are not.
For example, items such as gas, groceries and school supplies may be acceptable purchases; whereas, clothing, restaurants and parties would not.
Make sure you both receive monthly copies of the statements and discuss the statement in detail.
Let your child know you are proud of them for maintaining a low balance, paying on time, etc.
The fiscal behaviors you instill in your son or daughter at an early age are likely to stick with them a lifetime.
Armed with many new responsibilities, these young adults have much to learn about their futures.
Sadly, it has been reported that financial literacy is declining with each generation.
This suggests that as our children grow up and go off to college, they haven't been adequately trained on good money management skills.
Many college students fall into the trap of credit card debt before the end of their first year.
Along with student loans, credit cards are quickly becoming the largest source of debt among Americans under the age of 25.
Fortunately, there are a few ways to protect your college student's credit while allowing them to learn how to responsibly manage a line of credit.
Teaching Tools There are numerous tools available to help your son or daughter learn to use credit wisely.
Before allowing your them to apply for a loan have them participate in a credit counseling course.
These courses are a required part of the bankruptcy process, but have highly valuable information for people in all financial situations.
A credit counseling course overs how to create a budget, money management strategies and how to use credit responsibly.
Typically, a credit counseling course is offer for around $30-$60 and last around 90 minutes.
That is 90 minutes of information that can change the financial future of your son or daughter.
With the advances in technology, comes smarter ways to manage your money.
There are many online tools available to help anyone create and manage a budget, which even sends alerts when they approach their budget limit.
Many new smartphones have applications that can be purchased or downloaded from their banks software as an additional tool for keeping track of their money.
Knowing when their money is low can prevent the misuse of a credit card on non-essential items.
Setting Rules As a parent, you may have to co-sign on a credit card for your son or daughter.
Taking on such a great responsibility requires your participation in the entire process.
Don't just give your child a credit card and say "good luck", instead make the credit card a source of monthly discussion.
Before your college student applies for the card, sit down and make a list of spending rules for the card.
List what items or activities are acceptable for purchase with a credit card, and which are not.
For example, items such as gas, groceries and school supplies may be acceptable purchases; whereas, clothing, restaurants and parties would not.
Make sure you both receive monthly copies of the statements and discuss the statement in detail.
Let your child know you are proud of them for maintaining a low balance, paying on time, etc.
The fiscal behaviors you instill in your son or daughter at an early age are likely to stick with them a lifetime.
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