Letter: Be responsible with credit cards
 |
| Advocate Columnists |
 |
Print
Email
Save
Reprints
Twitter
Share
Del.icio.us
Digg
Facebook
Reddit
College students are a privileged group of individuals who are able to obtain a credit card without need of a prior credit history, employment or a parent’s co-signature.
Most young adults gladly take advantage of this opportunity. After all, a credit card is a great financial tool. It can be more convenient than cash; it can be especially useful in emergencies; it allows one to establish a credit rating; and it offers valuable consumer protections under federal law.
At the same time, credit cards are a big responsibility. Young adults can face life-altering consequences if excessive credit card debt is accumulated during their college years simply because they didn’t have the financial literacy skills to responsibly manage their accounts.
Rather than building a positive credit history, irresponsible credit card use can result in a negative credit score, which will be a long-term financial liability as students graduate and embark on their adult lives.
When students are burdened with excessive credit-card debt, research has shown that grade-point averages can suffer, and feelings of depression may prevail. Some students even drop out of school or default on student loans.
In its 2008 nationwide survey, the Jump$tart Coalition reported that participating Louisiana high school seniors scored 45.3 percent on personal financial basics. This represents a decrease from 2006’s average score of 47.2 percent. Jump$tart also conducted a college students’ survey and although their average score of 62 percent was better that their high school peers, it is clear that many of America’s students are in dire need of basic financial literacy.
It is especially important to learn how credit cards work and how to responsibly manage one’s account.
Managing money, like many other things, is simply a learned skill that can be developed if we have the desire and determination to do so. And since having money seems to depend more on how well we manage it rather than on how well we earn it, money management is best learned early in life.
Mistakes avoided today are sure to have a positive impact on your tomorrows.
Ken E. Uffman, state coordinator
Louisiana Jump$tart Coalition
for Personal Financial Literacy
Baton Rouge
Most young adults gladly take advantage of this opportunity. After all, a credit card is a great financial tool. It can be more convenient than cash; it can be especially useful in emergencies; it allows one to establish a credit rating; and it offers valuable consumer protections under federal law.
At the same time, credit cards are a big responsibility. Young adults can face life-altering consequences if excessive credit card debt is accumulated during their college years simply because they didn’t have the financial literacy skills to responsibly manage their accounts.
Rather than building a positive credit history, irresponsible credit card use can result in a negative credit score, which will be a long-term financial liability as students graduate and embark on their adult lives.
When students are burdened with excessive credit-card debt, research has shown that grade-point averages can suffer, and feelings of depression may prevail. Some students even drop out of school or default on student loans.
In its 2008 nationwide survey, the Jump$tart Coalition reported that participating Louisiana high school seniors scored 45.3 percent on personal financial basics. This represents a decrease from 2006’s average score of 47.2 percent. Jump$tart also conducted a college students’ survey and although their average score of 62 percent was better that their high school peers, it is clear that many of America’s students are in dire need of basic financial literacy.
It is especially important to learn how credit cards work and how to responsibly manage one’s account.
Managing money, like many other things, is simply a learned skill that can be developed if we have the desire and determination to do so. And since having money seems to depend more on how well we manage it rather than on how well we earn it, money management is best learned early in life.
Mistakes avoided today are sure to have a positive impact on your tomorrows.
Ken E. Uffman, state coordinator
Louisiana Jump$tart Coalition
for Personal Financial Literacy
Baton Rouge
 | ||||
| Most Popular | Most Emailed | Hot Topics | ||
