Teenagers usually have a lot of problems when growing up. As result of this, it is advisable for their parents to counsel and guide so that they do not make mistakes that they will regret for the rest of their lives. At this age they are usually curious as to many things. Not only that, they may want to be financially dependent to some extent.
Most teenagers have been raised up to know that there is available credit for them to use. Based on this, they tend to have a habit of spending spontaneously with their credit cards. Dad and mum usually pay their bills with their credit cards and it is therefore normal to pay with their student credit cards.
In this regard, parents should teach their kids by showing good examples. Parents should have only one credit card in order to prevent the accumulation of credit card debt. Also, it is very important that students are taught how to spend money. Purchases should not be done spontaneously because your kids will end up doing the same thing.
Students are usually persuaded into student credit card application whether they really want it or not. Not only that, they may be given a gift as part of the marketing and promotion strategy of the credit cards. Most students do not know the financial implications of using student credit cards especially when they have not started earning money. This is where the advice of the parents is very important.
A student can be taught the initial steps of financial maturity in the tertiary institutions or high school. At this stage of a student’s life, he may want to earn money on his own in order to pay his tuition and accommodation fees. A student that has never worked before may tend to get into their personal finance problem when he uses credit cards. In this regard, we strongly advise that students should not get student cards until they have worked for a reasonable period of time.
You must understand that a student will apply for a credit card without your knowledge. Considering this fact, you will have to advise them about the advantages and disadvantages of credit cards. Also, you will have to advise them that financial institutions issue credit cards solely to make profits. Whether a student gets into financial debts for the rest of his life or not is not their business. Also, the financial debt can affect the student for the rest of his entire life.