Welcome to Raising Money$mart Kids!

What do YOUR kids know about the value of a buck? If you're like most families, finances aren't often discussed. Some parents feel that talking about money makes their kids feel like they're poor. Others may not know where or when to start to help their kids learn about budgeting or business or banking.

Here at Raising Money$mart Kids, you will find articles on everything from setting up an allowance to running a lemonade stand to helping kids make better purchase decisions. You can ask questions get help from the community.

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Friday, July 16, 2010

Is Your Teenager Money-Savvy Enough to Go to College?

Credit Card Companies Are Waiting to Pounce on New College Students

Credit card debt is at an all-time high across the country. According to a Nilson Study, 78% of American households had at least one credit card. Credit card default is also at an all-time high, especially in the 18-24 year old category- mainly college students. The ease of obtaining a credit card in the first year of college and a lack of basic financial literacy join to make this the most vulnerable group of consumers.


1 comment:

jcorn said...

I'm a bit worried about one of ours. The other two had done just fine after going a week or two living on Ramen soup. Luckily, they learned quickly. I may have been a bit too intense when describing the risks of credit card debt. Our 27 year old doesn't have one but (and I don't think parents can do this any more) he has a credit card history because I got a card under his name when he was 5 years old and occasionally charged and immediately paid off $100 about 2 or 3 times a year. His credit score is nearly 800 or close to the highest possible number. He shows at least a 20 year credit history, without ever having a credit card in his hands. I've since buried that card somewhere. I may take it out and have him spend another $100 and then pay it off just to keep the card active.