The younger generation, particularly the teenagers hitting their early 20s and late teens have come to realize the value of money and how important it is in the world today. It is important for parents to help make ease the transition of leaving home easy by way of monetary or financial support such as through college credit cards, once in awhile. Most parents also use the time for their kids going off to college as a way to transition them from being under their care to somebody responsible enough to care for themselves out in the real world.
College credit cards are basically credit cards that still come in the form of the plastic card loaded which enables to user (in this case your kids) from making purchases from stores with a credit line that is directly charged to the bank that issued the card. While there are similarities with the standard credit card, the student credit card differs in the sense that the card has a lot of more to offer specifically giving out great promos and discounts for the kids and teenagers to use.
Credit cards for teenagers also have limited buying power. Parents can set the amount of money that can be charged on their child’s card which will be renewed every billing cycle.
Here are some solid reasons why students particularly those in college should get college credit cards and why it is a wise investment and a good teacher in terms of teaching your young adult how to manage their finances wisely.
* It’s a great teacher – As mentioned earlier, giving your son or daughter a college credit card while studying in college will definitely teach them the value of money and how they should spend wisely. A nice tip to definitely hammer the point on the virtue of thriftiness is by informing your college or university bound son or daughter that the credit card will be their only source of finance. You wouldn’t be able to send them money if they run out. You can also inform them that you would be able to help but there will be a delay in sending cash out or wiring them funds. This will at the most give them a notion that they would be on their own for a while when they don’t think about the way they spend money.
* Credit Standing – The whole financial system of the United States is built on credit standing. The better your credit standing is with the bank, the better the chances of borrowing money or getting better service or increased perks from various businesses such as mobile phone services or internet connection. On the downside if you start down the path where the bills under your name don’t get paid on time or you start missing payments you will most likely also ruin your credit standing. Giving your kids college credit cards from banking companies such as Bank of America with their Student Platinum plus visa credit card. There are also some credit card companies and baking firms that can help your child gain added insight in the world of credit cards and banking with various daily updates and tips either through text or through email.
* Freebies and Added Value – Why stop at just giving your daughter or son a college credit card that they can use for buying all their important school supplies or even their food and dorm rental. Some credit card companies such as cash back incentives or bonus freebies. Some college credit card companies even give out free movie passes or huge discounts on restaurants and fast food chains.
* Less Hassle – Some lending firms doing business with university students or with younger consumers tend to lower the interest rates. There are some companies that will actually remove the annual fees on credit cards once the account holders account with the company reaches a year with good credit standing. There are also some parents who would be happy to hear that there are also banks that tend to give higher cash back percentage for accounts that get paid either on time or earlier.
* Controlling Expenses – By giving your college bound child a college credit card, you are also opening up the possibility of giving your kid the chance to buy or spend unnecessarily. This also means that parents should be prepared to get a surprise on the billing statements once in a while together with some longer telephone conversations with your kid. One great advantage of giving credit cards to your kid is the ability to actually control the amount of money the card can use. If the money in the card is not enough, the child can simply call you, the parents, to notify an increase in the credit limit on the card that they are carrying.
Overall, while parents sees handing over a college credit card to their child who will be going away for college education, it will be a good time to learn how to trust your child’s ability to become resourceful as well as gauge their learning curve in terms of handling money and finances and at the same time bring both parents and child out of their comfort zone and begin to explicit trust each other once again.