Young people should be informed and ready to make the right decisions when purchasing a car, obtaining a credit card or renting an apartment for the first time. Credit card interest rates are among the highest allowed by law, and can have a devastating effect on personal finances for years after a young adult incurs a credit card debt. Too much debts or a poor payment history can negatively affect your credit report. In most cases, negative financial information stays on your credit report for at least seven years and can be used to reject future credit applications. Parents of young adults, and young adults themselves, should consider using debit cards as an alternative to credit cards.
Debit cards permit deductions directly from one's checking account as one makes purchases.
Unlike personal checks, the use of a debit card results in an immediate deduction from an account, so there must be adequate funds in the account when the purchase is made. Of course, young adults should make sure to keep track of debit deductions to avoid bouncing any checks. In an information-driven society, it's important to know how to protect your personal information from identity thieves. Never give out personal information such as social security, credit card or debit card numbers on an unsecured or unfamiliar website. Identity thieves often monitor the Internet in search of such information.