Majoring in Debt
An MSNBC article on 8/11 highlighted the trouble many college kids get themselves into after signing up for their first credit card at collegeónamely, lots of debt. According to student loan provider Nellie Mae, the average freshman accumulates over $1,500 of credit card debt, a figure that more than doubles by their senior year. Almost half of all college students with credit cards have at least four cards.
Matt's View
When kids are away from mom and dad for the first time is not exactly the ideal time to introduce them to a piece of plastic with seemingly magical powers to make pizza arrive at their dormitory door. Better to educate kids about the proper uses of plastic while theyíre still at home, teaching concepts they're not likely to stumble upon on their own such as using credit cards only for pre-planned, budgeted purchases and always paying the balance in full. Even better is to give them real-world, supervised experience by co-signing for a card before theyíre old enough to have one in their own name.
This article filed in: Credit/Debit Cards , Debt , Kids
Managing Money by The Book
- "To keep me from becoming conceited because of these surpassingly great revelations, there was given me a thorn in my flesh, a messenger of Satan, to torment me. Three times I pleaded with the Lord to take it away from me. But he said to me, 'My grace is sufficient for you, for my power is made perfect in weakness.'" - 2 Corinthians 12:7-9
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