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Comment: Credit-card debt at an early age can add up
Date published: 7/1/2008
"CHARGE IT!" A study done by Jump$tart Coalition for Personal Financial Literacy found recently that one-third of high school seniors own a credit card. And the problem is growing--surveys conducted by Robert Manning for his book "Credit Card Nation," showed the number of college freshman with credit cards had tripled between 1999 and 2002. Starting a credit history at such a young age can be the easiest route toward lifelong debt, said Marlena Jareaux, author of "26 Financial Things to Teach your Parents." When asked what age is appropriate to obtain a credit card, she responded, "I can tell you what age to not get a credit card: in high school."
Although you have to be 18 or older to own a credit card, it doesn't mean 18 is the magical age, at which you are responsible enough to know and understand the world of credit. Unlike Credit-card companies are not worried if young people fail to repay their charges because failure to pay is how the credit-card companies profit. Finance is something that many find easy to ignore or makes the average teen think "boredom!" In turn, credit cards may start to seem like free money. But something that needs to be focused on is the impact thoughtless credit-card purchases can have on your future. What you need and what you want are two very different things. Teens have a hard time defining that line, said Jareaux. "Just say no to those shopping temptations that may seem today to be a good idea." That new pair of shoes, video games and fast food add up to big bills that, with finance charges, pile up to even larger bills.
Anyone looking to find out more about finance should visit the first two lessons in Jareaux's book, available free for download on her Web site, 26thingstoteach.com. Tricia Callahan is a student at the University of Mary Washington.
Date published: 7/1/2008
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