Helping Students Understand Debt and Finances

Kids across the nation are headed off for their freshman year of college. Although this is a very exciting time in their lives, there are some important things you must know if you or someone you know is heading off to be on their own!

To begin we would like to talk about the number one problem that college kids find they have during their freshman year and that is credit cards. This has to be the number one mistake that kids make even before they get to school.

That’s right, because parents usually give their kids one before heading off or when they get to school they become hounded by booths set up telling students they could pay later and even taunting them with free gifts.

Why do they target freshman you ask? Well, the answer is simple. Freshman come to college with a clean slate. They don’t have bad credit and they don’t have good credit so no credit is considered good credit. They are at an age where they want to be independent and this is the way most students feel they can become independent and get what they want fast.

But, if students aren’t careful, this could become a nightmare really quick and before you know if students will be digging themselves a whole so deep they can’t recover.

So, with that being said, if you or someone you know is heading off to school be sure you talk about the precautions that come with credit cards and if not used properly can create long term debt, bad credit, and will later lead to being denied car and even house loans! For more on credit cards and how they can be used to help you instead of hurt you check out the video above.