You could be the type of parent who thinks that your teenage kid is still a bit inexperienced to make an important decision such as choosing a credit card, yet some would leave the decision to their kids as a test of their maturity or as an overture to independence. Regardless of what your views are about this matter, one truth remains, that the credit card companies see the younger generation as an emerging market.
Of course, many are not at all happy with this development as they see these young individuals as an easy target for exploitation of these financial companies who would stand to earn tons of money from the possible faux pas that these kids are likely to commit when using their credit cards because of lack of control and financial management skills. It would be good if majority of these teenagers could learn from their credit card mistakes after going bankrupt a number of times, but a lot of times, this would not be the case.
Be that as it may, stumbling is part of the learning experience and if we as responsible adults could ably lead our children to the ways of wise spending, then they could learn to manage their finances well early and steer clear from the dangers of overspending and the accompanying negative results. As children nowadays get to be more advance in everything, it may not be bad at all to let them realize the importance of money how to spend them wisely and how to deal with the temptations presented by credit cards at this early stage.
As credit card companies have realized that this group of young individuals is a veritable potential market, universities and colleges are now teeming with all sorts of offers from all major credit card companies. Freebies that will entice the younger market are generously given such as caps, t-shirts, etc. It is very likely that the unsuspecting students will be awed by their amazing sales proposals so they should be forewarned of these sales techniques. The important considerations should be that the card is affordable and with low APR. Student s should be wary of cards offering interest free on the first period but with escalating interest afterwards. Cards with 16% or lower interest rates could be the best choice. Choose also the card that allows a longer grace period for payment as students have the propensity to “forget” their payables.
Finally, regardless of the card’s affordability, the ultimate consideration will still depend on the student’s maturity and ability to stay within his paying capacity. If a student is able to handle his finances well, then he would benefit from the rewards offered by the card for prompt payment, among others. He could also choose to change credit cards by using the offers on balance transfer with zero percent rates.