College Students and Credit Cards

Posted on August 18, 2009 
Filed Under Fathering, Parenting, Personal, Social Concern, Spiritual Life

Our family is enjoying the temporary return of our oldest son to the home. He’s back, in between his summer internship in Washington, D.C. and returning to Michigan for his junior year of college. It has been fun to hear some travel stories and have his wit back in the family mix.

He dropped me off at work today, and told me that he recently learned that he has been the beneficiary of our good financial history. Evidently putting him down as an approved user for one of our credit cards makes him a partner in our credit rating. I think I knew that, but it was a good reminder. I admonished him to make sure he doesn’t mess up that good rating through financial mismanagement. He won’t, as he is quite restrained in his spending and very responsible with his budgeting. Still, it made me think through the approach to credit card use for our next oldest children. Maybe I’ve got some second thoughts about letting them ride my coattails, if you will, when it comes to credit cards.

Now, we try to model fiscal restraint and responsibility in our lives, and our kids have seen us delaying purchases, buying at thrift stores and paying off that credit card bill every month. Still, the pull of the world will try to convince them that they have to have “stuff” now, and that having a credit card is the key to their significance and satisfaction in life. So I know there could be difficulties ahead for them, especially if they succumb to the marketing and don’t learn to use a card wisely. But maybe I need to help them see a credit card isn’t a necessity?

Seeing these statistics certainly should give a parent pause when it comes to their college student and credit cards. And here are more stats about the proliferation – and misuse of – credit in this segment of the population. Illustrating the dynamic of how credit companies are targeting young adults, one student admitted he had bought the lie of credit card “freedom” in this testimonial.

So what’s the solution? Well, here’s one rather dogmatic perspective on college students and credit cards. The writer notes the rather predatory practices of credit card companies, and the tendency of young adults to spend now and later figure out how to pay for the goods. Looking around, I can’t say I disagree with this “no credit card” approach!

Related, read financial expert Dave Ramsey’s take on getting your student a credit card (fans of Dave’s straight-forward approach to money already know what his advice is!).There’s not much room to argue with Dave’s perspective!

Alright, I’ve processed via this post, and am convinced that…I’m still not sure what we’ll do with the rest of the five kids when it comes to credit cards. But I’ve got to admit that I’m not likely to share my credit card with them, and I’m probably going to work harder on making sure they have a biblical understanding of money, debt and material things.

I’ll welcome your thoughts – leave a comment.

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