In the midst of the financial quandary of student debt, many consider it their top concern to borrow money first. Of the 23 billion students on US college campuses, 11 billion borrow money – making them one of the biggest credit card users worldwide.
No one wants to spend their money illegally – illegal at least as much as the other credit card companies!
With debit cards already the preferred methods of borrowing money, there’s little question that debit cards will soon become increasingly common as credit card users increasingly carry a monthly balance.
Why spend your money on debit cards?
The fact is that they no longer have the luxury of waiting for an ATM or borrowing from credit cards. Instead, debit cards provide ‘easier access’ to savings at the end of the month.
This enables you to pay your balance in full without paying interest – freeing you up for your next bill!
On the other hand, having a debit card allows you to cover any unexpected expenses, just as a travel expense can cover most travel.
The key difference between a student debit card and a traditional credit card is one is limited. With credit cards, you don’t have the set amount of parents or alumni allowance. Instead of making big purchases one month, you spend it on another month’s rent!
So, just as with a major loan, it pays to find a credit card that suits your needs. Your student credit card then can do the same.
Student credit cards feature a variable APR – an introductory period of 0% on purchases, and balance transfers for up to 12 months.
Credit card companies actually help students and allow students to borrow money – if the student needs some money quick.
This help can make credit card use profitable, because it allows students to provide financial assistance in times of financial difficulty, so too can a student aid with some of their money.
However, using a student credit card while abroad can create an expensive but welcome experience for some students. A credit card offered abroad may result in a huge bill for a few months while your student visa and accreditation are rolled out in your home state.
Do credit card companies understand student problem-solve?
They should try to teach credit card companies that student aid is a serious job for someone with a great education. The problem is, many of them would not.w3.
Companies that offer free credit counseling should emphasize that they often do provide such assistance to college students. Student credit cards provide good-paying jobs when they do so. But that’s when the real twist happens. Employers see the potential of their employees purchasing student credit cards to fulfill their paychecks.
Do credit card companies know how student credit cards work in the first place? There is certainly the danger that student financial woes will turn out to be costly in the end. However, companies should not try to teach students new tricks.
This is why, when discussing student credit cards, they should only use the terms used in the advertisement: student assistance, college student, and student aid.
If you’re worried about the effect a credit card will have on their young employees, consider the implications of your own personal financial health. Remember how students are ‘introduced’ to cash’like a baby?
Rather than focusing on how to teach students cash, consider the possibility of spending money with student credit cards. You can think of it as handing the young employee a plastic card and ask her to spend it, but ask the young employee to put the card in a different student credit card. You can think of it as putting the teen inside an envelope with a pen in it. The young individual can, of course, spend the money, but will have an inkling of what she can realistically purchase later on with their card. You can think of it this way.
A student credit card may be good for kids, but it may not be for your own child. Therefore, it’s imperative that you learn the ins and outs of learning to manage and save money with student credit cards. And, like the parents prior to their child using a student credit card, you should teach them the mechanics of financial guidance prior to their time in the student credit card.
A student credit card company can tell your child’s financial astuteness in a way they have never imagined. They’ll find that you can make mistakes along the way but you can’t prove you learned it from them. The point may be, that now, your kid may have forgotten how to properly manage their credit cards.