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College is the first taste of the real world that young people get while still being protected by something that looks out for them. Most young people move away to college and even though they are still being funded by mom and dad they are given the feeling of what it is like, for the first time, to not answer to someone for everything they do. That first feeling of independence is great but also very intimidating.

As college students begin to make their own decisions about money, they are frequently presented with credit card applications. This is because credit card companies make a special effort to get college students without jobs to open accounts. Parents, though, can help their children at college to stay out of credit card debt by making sure their children understand the disastrous consequences they will experience later in life if they allow themselves to get buried in debt at a young age.

In order to help your college aged children, start by educating them about why college students are especially susceptible to credit card debt. They also need to understand exactly what results they can expect to experience in the future if they get into credit card debt while they are still so young.

Causing damage to your credit at such a young age will make renting an apartment or getting a home loan extremely difficult. Some college students rack up so much debt that they are still trying to pay off debt from their college years when they are in their thirties. Understanding the dangers and consequences of getting into debt at a young age is a big deterrent.

Offering Your Assistance

Parents can offer assistance to their college aged students by giving them access to a credit card that’s spending limits can be controlled by the parents. This approach works well because, one way or another, college students will need to have a source of money to turn to if a situation arises in which they need to make an expensive purchase.

Always make sure there are funds available to them on the credit card and this way you not only help them have the funds available but you can monitor their spending with the monthly bill.

Ultimately, your college students need to start making their own decisions, so all your advice and help can only go so far. Feel confident as a parent by doing all you can to help your kids make the right decisions about credit card debt.

1. Sanja says: September 2nd, 2008 at 9:28 am

   This is very true; during a regular college school year, I get so many offers for credit cards. Some even try to trick you into applying for a credit card by offering free stuff!! You have to be really careful with that because they will say things like “Oh we wont send it in” or “Just throw it away when you get a paper offering a credit card.” What they forget to mention is that you are applying for a credit card right there!! They did that to me once. I definitely learned my lesson!!!