Today s college students are flooded with credit card offers. Credit card companies visit campuses handing out applications and free goodies.
Cashiers often drop a credit card application in each bag leaving the college bookstore.
For many students, credit cards present a temptation to charge far more than they can afford to repay. But, used properly, a credit card can be a learning tool that provides convenience, cash protection, worldwide merchant acceptance, an emergency source of cash, and a head start on establishing a good credit history. The Kentucky Society of CPAs offers the following advice for helping your college-bound student learn to manage credit wisely. Let your child know that when bills aren t paid in full, the outstanding balance accrues finance charges. Explain how it could take years to pay off even a modest balance if he or she pays only the minimum due each month.