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 Massachusetts 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.