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Ok..that one’s for the parents…

If your teen will be attending college soon, you need to educate them on issues related to money and credit card management. College students are showered with offers from credit card companies, nearly as soon as they set foot on campus. Credit card companies try to entice students to apply for their credit cards, by offering free movie passes, T-shirts and even school supplies! Did you know that they don’t even have to ask your permission to apply for a credit card? Plus, whether your kid gets by their heads, the credit card company is counting on the fact that YOU (the parent) is probably going to foot the bill!

If you must give your college bound teenager a credit card, here are two smart ways to compose certain things don’t get out of control:

1. manufacture your child an authorized user of any one of your credit cards.

Your child will thereupon obtain a credit card with his name printed on it. However, the card will be attached to your personal history. You will be held responsible for the purchases the child makes with the card. Nevertheless, that is a good learning experience. prepare certain your child keeps track of all the expenses and takes responsibility for the amount.

2. whether your child is mature abundant and has demonstrated financial dependability, try co-signing a credit card. that credit card will be in his or her name, but you are responsible for the debts incurred. Nevertheless, that card permits your child to begin developing a self-sufficient credit history, since he will be the main user.

With both of these methods, you will have ultimate control by the explanation. And don’t be afraid to cut them off whether their spending gets out of control!

Leeia

Orginal post by Leeia Ladipoh

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