Life Lessons Can Shape College Students' Money Management Skills

Dallas Morning News
August 14, 2010
Yip, Pamela

One of the biggest issues facing parents is whether a college-aged child is ready for a credit card and, if they are, the ways in which the account should be used. The Credit CARD Act of 2009 prevents anyone younger than 21 from getting a credit card unless they have a co-signer or can prove they have sufficient income to cover payments, making cards less accessible for many students. Still, many parents are not always comfortable with co-signing because it puts both credit histories on the line. Another option for parents is to add their college student to their own credit card as an authorized user, which would allow them to quickly spot anything the child charges. Managing money in college is also about managing the money in the bank, which means kids really need to understand how an account works. Parents should also seek to be honest about their ability to help their child financially, especially when it comes to creating a budget for the school year.
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