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Personal Finances / Credit Cards and Consumer Debt
|Subject: Re: Credit Card for College Freshman||Date: 5/27/2007 8:22 PM|
|Author: Windowseat||Number: 253668 of 309666|
Like I said, I trust him, but I would like to keep an eye on him financially for at least his first year away, and maybe having him on our credit card is one way to do that.
As always, any and all ideas are appreciated.
Congratulations on the new graduate!
First, I'd suggest that at some point in the next couple of months, you and your wife sit down with him and discuss credit cards, debt, long-term interest plans, and why having huge debt can derail plans. There are plenty of people on this board who are still paying off some pizzas and beers from their senior year in college. I suspect that most of them will be delighted to explain why it was a mistake. Help show him how running up debt now ("I just gotta get these new sunglasses!") can help wreck future plans. You can also discuss budgeting, planning ahead, and so on.
Here's an article from the Washington Post about college students and credit card debt. You might want your son to read it.
Second, instead of putting him on your own card, you might want to look into some form of secured credit card. Essentially, you load the card with cash at certain specific, set intervals. Your son can then use the card as much as he wants, until he runs out of money. If he wants to earn money and reload the card, he can. If he has had a certain major expense that was unlooked for, he can