For better or worse credit cards are a part of American life. Help your kids learn about how to use credit before the stakes are too high. You would not let your kids drive without taking driving lessons so why you send them off to college before understanding credit cards late fees and interest charges?
Needless to say when your teenager hits the college campus they are bombarded by offers of “free credit cards”. Unfortunately many a student has been lured by the promise of free credit. Before you know it they have accepted several offers of credit cards, and then maxed them out with items they feel was “needed”.
In a survey conducted by Sallie Mae and Ipsos, a market research company, found that 5% of students carry an average outstanding balance between $2,001 and $4,000. Financial literacy begins at home. Engage your children in discussions about money. Perhaps start them with a secured credit card or an unsecured card with a very low limit. You cannot prevent your children from making mistakes, but you can arm them with knowledge and experience they need to make sound financial decisions for at least most of the time.