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Whether you have children attending college, or the memories of your days as a young adult are very present in your head, you probably know how difficult it is to make ends meet when you are a full time college student. There are many monthly expenses a student has to face, including tuition fees (which are horridly pricy nowadays), study material, lunch money, and whatnot. Some of these kids may also have to pay for accommodation, gas for their cars in case they live far away from campus, clothes, etc. Whether they attend an outer-state college, or a state college, the reality is that being a student is very expensive.
Some of these expenses are covered by you as a parent, and others are covered by the part-time-working student. No matter the case, sometimes cash is not always at hand, specially when unexpected situations call for unexpected money expenditures. A car breakdown, a medical emergency, you name it. It happens, and not everyone has the financial means to face situations like these. Here is when credit cards come in handy.
Advantages Of Student Credit Cards
It is no secret that the financial world is an ever-evolving market which is always coming up with new ideas to cover every single demographic niche. And so the financial market conveniently came up with student credit cards. These credit cards are specifically tailored for college students. They are even offered within the college campus.
As it is to be expected, this credit card type does not require the applicant to be a walking example of credit-worthiness. As a matter of fact, it is not even necessary to have a job, or a credit history of any kind. Thus, student credit cards are very easy to obtain. They offer the average student to finance their purchases while establishing the grounds of a good credit history at the same time.
What is more, having a credit card in your pocket is much safer than carrying around cash, which can be easily lost or stolen. Also, a credit card is a great source of money in case of an emergency.
Disadvantages Of Student Credit Cards
As these credit cards are offered around campus and almost anyone can be approved for them, they constitute a risk for those who are unable to pay for they purchases.
What could be a great aid for the student can easily become a death trap if the purchases are not paid for in a timely manner. Credit card debt can without difficulty pile up and thus ruin anyone's credit rating. And for a young adult who is most likely taking out student loans to pay for tuition, thousands of dollars on credit card debt is an awful idea.
Bottom line, only buy what you can afford.
For The Parents
Now that your kids are entering the world of adulthood, it is a good idea to teach them about credit card holding and creditworthiness. You might believe that they already know all this (they might even believe this), but it is not always the case, and anyway, better be safe than sorry!
Teach them to use their credit cards wisely, they do not always replace cash. Instruct them on how to keep a record of every purchase, this will help them to see where the money is going.
But truth be told, nothing can replace a good parental example, so follow your own advice! Let us all be excellent credit card holders. |
