Your son or daughter is off to college and you are thinking this might be a good time for them to have a credit card. After all, they need to establish credit, don't they? They might find themselves in an emergency!
Before you give them that credit card, think about this:
- Half of college students have 4 or more credit cards - Why do they need so many?
- The average undergrad carries over $3,000 in credit card debt - Do you know how long that takes to pay off?
- 25% of college students pay late fees on credit cards - That just adds to the debt!
- People between ages 18 - 24 spend almost a third of their monthly income repaying debts - That's a lot of money!
- 84% of undergrads said they need help managing money - How does a credit card accomplish that?
So, rethink that credit card for your college student. Maybe it would be better to invest in some money management. If you want to see a good program, check out Ramsey.