Today students are very independent and looking at ways to pay their own bills many times. Most kids look at a steady summer job as a ticket to college and financial independence. In such a scenario, credit cards are an extremely interesting prospect for nearly all of them. While the markets may not be offering the best deals for credit cards every time and interest rates are higher, having a credit card can really make a lot of difference to kids today. Most parents are wary of giving their kids a credit card early, but it is also a good way to teach them how to manage money and their expenses.
When considering student credit cards for your college going youngster, make sure you know that they can handle the responsibility that comes with it. Encourage them to put aside a certain amount for savings early on and make sure they know that the credit card will be an important step to establishing a good credit score for their future. Most kids don’t understand how having a credit card and making payments will impact their life. This makes them quite lax in doing their payments leading to losses at a later point in time.
When you look at a suitable student credit card, make sure you consider the options carefully. Many parents consider going for a joint card wherein their child will get to share their credit scores and can get a card with a good credit limit under their parent’s name. This is a good thing to do if you are confident your child is able to manage their expenses well. Be warned however that any errors or delays in payment will impact both of you in the long run. Talk to your children about student credit cards and make sure they understand it is a privilege that must be sued wisely.
A popular option for student credit cards is prepaid and secured credit cards. These allow for more control on the card and the spending habits of the child. This allows the child to ensure that they are not going out of line when making their payments. You can choose to increase or decrease credit limits on the card for your child in order to make sure that they learn to use the money available to them carefully and in emergencies. Secured credit cards are often a preferred choice among many students and there are interesting deals and discounts available on special student cards.