Credit cards and Students

[Gail Cavanaugh]

Now that the recession has hit us and many issues were raised over the problems with debt in this country, ti may be a good idea to begin to educate your children on the responsibilities of handling credit cards.

Many of the banks are targeting high school and college students about acquiring credit cards. However, many college students are graduating from college with significant debt. If the students and children plan on prospering, it is important that they be made aware of the proper way to manage their money.

I have created a website to address these issues and help you to think about how you will inform your children. Here is the URL: http://www.freewebs.com/gailcav. It is entitled "Kids Guide to Credit Cards." I hope you enjoy it!

Gail

[Olympia Scott]

That is a good resource for parents to have their children read regarding credit cards. It is a basic overview of what credit cards are and how they work. I agree with you regarding the importance of teaching children about credit. Especially in this economy where credit has become such a problem for many people.

For some reason the link didn't work. I'll try to provide it again here for you:

http://www.freewebs.com/gailcav/

[Olympia Scott]

This article prompted me to write a post about teaching our children good money sense.

[Gail Cavanaugh]

Yes, as we learn how to manage our own debt, we can teach our children why it is important for them to manage their debt, also. We have to show a good example in oreder for them to take us seriously. Otherwise, they could end up making the same mistakes.

[Gail Cavanaugh]

Larry Burkett said in his book, Crisis Control in the New Millennium, the "Today 11 percent of all credit cards are held by 18-21 year olds. But they represent 33 percent of all credit card debt, and 28 percent of them maintain a rollover balance each month."

[Gail Cavanaugh]

The average American has anywhere from $8000 - $10,000 in credit card debt. If you are carrying credit card debt, you need to look for ways to save on the things you purchase and as you save, macke a conscious effort to bank the savings instead of spending it. In this way, you will be able to accumulate savings which could help im emergencies.

If you have trouble saving, set a goal not to touch the money until the account reaches a certain level, say $3000 or $5000. In this way, you will accumulate more money.