Credit Cards for Teens
Credit cards for teens can be a two edge sword. It is good for a teen to learn the importance of developing good credit. The teen learning to manage a credit card can be a good way to teach this principle. It is important that the teen learn to pay the credit card off each month, rather than carrying a balance however. If a credit card for teen is treated like the emergency tool that it is it can be a positive experience for them. If they believe that the credit card is like money growing on a tree they may develop a warped sense of the value of money.
On the flip side credit cards for teens may send the wrong message if the teen has no accountability for the funds they spend. It may be hard to conceive that there are really teens with credit cards that donít have a spending limit. They charge what ever they want and donít ever see the statement at the end of the month. This can create a problem for the teen when they leave the nest and marry someone without limitless funds. A person that has never learned the value of money will struggle one they are on their own.
Credit Cards and Students
At many colleges across the country credit card companies set up booths or tables on campus soliciting new credit card accounts for students. Credit is given fairly easily and students may even receive a credit card without their parentís knowledge. If the student has not learned how handle their money they will soon have their credit card maxed out with no way to make the payment. Credit cards and students can work together but the student needs to have some education about interest rates, penalties, and problems with not managing their credit appropriately.
It seems that credit cards and students would not create any problems. In reality if a student gets behind on their credit card payment they may end up damaging their credit rating. It is a well known fact that a poor credit rating can make life much more difficult. Renting and apartment, buying a car, even getting a job might require a credit report. If a student has done well in college but has a problem with a credit card account it may come back to haunt them later in life.
Students and Bad Credit
Students and bad credit may seem like an odd topic to discuss. In reality there are many students that get into credit troubles because they have not learned how to manage a credit card account. Students and bad credit do not need to go together but sadly they often do. If a student is taught how to properly use a credit card it can be a great tool to help them make it through college. If the credit card is misused it can diminish some of the success achieved in school.