Studies indicate that very soon, more than 7 million young adults will be heading to college, either returning for another semester or starting their first semester, the majority of them living in a dorm or apartment nearby campus. Have you ever taken the time to have "The Talk" with your son or daughter? If not, there is no time like the present, and the sooner the better.
No, not THAT talk, which hopefully you had with them long before now. The talk I am referring to is about establishing their credit and keeping it healthy. Credit is very likely something they are aware of but have not personally experienced. Since college is a time of learning things that will be used and with them for the rest of their lives, certainly the topic of "credit" falls well within that definition.
For all those years when they lived at home, you provided for them, you taught them, you helped them to varying degrees when they got into a jam or made a mistake, but the vast majority of parents have never taken the time to have "The Talk" with their offspring about credit. You already know that having credit is a necessity in today's world, and that establishing good credit is something that you work at regularly, and you already know how easy it is to get a blemish your credit report that will stay there for years, taunting you every time you apply for a new account or a mortgage or an auto loan. Yes, YOU have learned that, but have you taught THEM about that? Have you shared with them about your personal experiences with credit so they do not make the same mistakes that you did when you first got credit? Do not be ashamed to answer "no" to those questions, since the vast majority of parents will answer that way, but it is definitely time to teach them about that, BEFORE they get into trouble with credit.
Do you remember the first time you got a credit card? Wow, it was like having free money, right? For most people, that is the euphoric sense they experience, at least until the reality hits home, and they discover that they were only RENTING the money for a short period of time.
It is definitely time to teach them about credit, and to get them a college student credit card. There are dozens of places that cater to issuing credit cards for students. Since the student is a higher credit risk, the interest rates are much higher than what you as parents are probably paying, but if the card is paid off at the end of the month, then you do not accrue that interest. There is lesson #1, and many people who are grandparents have not yet learned that one.
Teach them that unexpected things happen, and that is part of life, and they need to be proactive to contact their creditor to explain it, instead of waiting for the threatening letters from the collections department. Being proactive will be immensely to their benefit. But then again, also teach them what constitutes an emergency expenditure of money, and that is NOT the big frat party when nobody else could pony up money for the keg of beer.
With good credit habits established early, your son or daughter can graduate from college with a solidly established and health credit score, which will put them miles ahead of most of their fellow graduates. That is the time to be looking for a job and a career, not trying to do that AND establish credit for the first time.
Take the time to talk to your college-bound kids about getting a credit card and learning to use it wisely. The knowledge, if taken to heart and implemented, will pay them back in spades in the future.
No, not THAT talk, which hopefully you had with them long before now. The talk I am referring to is about establishing their credit and keeping it healthy. Credit is very likely something they are aware of but have not personally experienced. Since college is a time of learning things that will be used and with them for the rest of their lives, certainly the topic of "credit" falls well within that definition.
For all those years when they lived at home, you provided for them, you taught them, you helped them to varying degrees when they got into a jam or made a mistake, but the vast majority of parents have never taken the time to have "The Talk" with their offspring about credit. You already know that having credit is a necessity in today's world, and that establishing good credit is something that you work at regularly, and you already know how easy it is to get a blemish your credit report that will stay there for years, taunting you every time you apply for a new account or a mortgage or an auto loan. Yes, YOU have learned that, but have you taught THEM about that? Have you shared with them about your personal experiences with credit so they do not make the same mistakes that you did when you first got credit? Do not be ashamed to answer "no" to those questions, since the vast majority of parents will answer that way, but it is definitely time to teach them about that, BEFORE they get into trouble with credit.
Do you remember the first time you got a credit card? Wow, it was like having free money, right? For most people, that is the euphoric sense they experience, at least until the reality hits home, and they discover that they were only RENTING the money for a short period of time.
It is definitely time to teach them about credit, and to get them a college student credit card. There are dozens of places that cater to issuing credit cards for students. Since the student is a higher credit risk, the interest rates are much higher than what you as parents are probably paying, but if the card is paid off at the end of the month, then you do not accrue that interest. There is lesson #1, and many people who are grandparents have not yet learned that one.
Teach them that unexpected things happen, and that is part of life, and they need to be proactive to contact their creditor to explain it, instead of waiting for the threatening letters from the collections department. Being proactive will be immensely to their benefit. But then again, also teach them what constitutes an emergency expenditure of money, and that is NOT the big frat party when nobody else could pony up money for the keg of beer.
With good credit habits established early, your son or daughter can graduate from college with a solidly established and health credit score, which will put them miles ahead of most of their fellow graduates. That is the time to be looking for a job and a career, not trying to do that AND establish credit for the first time.
Take the time to talk to your college-bound kids about getting a credit card and learning to use it wisely. The knowledge, if taken to heart and implemented, will pay them back in spades in the future.
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