It’s so tempting to get a credit card and use it – a lot – when a student gets to college. And many students do. In fact, statistics from 2012 indicate that the average undergraduate amassed more than $3,000 in credit card debt.
What can you do to help? YourCollegeKid.com has a few suggestions that will help you help your son or daughter.
Co-sign on a credit card with caution
People under 21 are required to have a parent or another responsible adult co-sign on any credit card account unless they can prove they have sufficient income to pay off the debt. Co-sign only if you know your son or daughter is responsible enough to handle this responsibility.
Add your son or daughter to your own credit card account
If you add them as an authorized user of your account, you can monitor their credit card use. You can tell them how much they are allowed to spend track their spending. And, they’ll have a credit card in case of an emergency. Remember, though, that you’ll be responsible for all of your son’s or daughter’s charges.
Secure their credit card
Consider getting them a secured credit card, which limits how much your son or daughter can charge to the card. This kind of card is linked to an account where a user – you or your child – deposits cash. So, if $500 was deposited into the account, that’s all he or she can spend. Keep in mind that these kinds of cards usually have annual fees.
Have “The Talk”
No, we don’t mean that talk. You’ve probably already had that one. We mean talk about credit card use and debt management.
If you’re looking for a credit card for your son or daughter, there are several you can choose from.
Next: Tools to gauge college costs and returns