Associate student credit card
Importance of associate student credit cards: Along with elation there is certain trepidation in parental mindset when their 18 year old enters college. School and college life is not only about studies but is balanced by extra curricular and shopping activities . The younger generation gives importance to all three sometimes in equal measure and sometimes skewed in favor of one over other. The spending money could be self earned or loaned or gifted by parents in form of monthly cash or credit cards. The easy availability of plastic money is turning the tide in favor of separate or add-on student credit cards as parents find it simpler to keep track of their childrens monetary past times. Giving them an associate student credit card passes on more responsibility and helps create sense of financial responsibility as they learn how to spend and save.
Other favorable points of associate student credit card include limit on spending as student will only spend amount set aside by parents and not any thing extra ; additional card helps in keeping them away from debts by limiting their shopping forays other than on books and academic essentials and boarding and lodging. Initially parents can deposit fixed amount in student account for purchase of essential items such as books, academic and extra curricular activities and eating out. The amount can be increased depending on financial needs of student and amount they are able to save . Giving an associate card is viable for parents when both are working and college is far from residence or located in another city.
Disadvantages of associate credit cards : The other side of credit card means additional financial burden of maintaining specified amount in bank to pay for students credit card. The amount multiplies if paying from personal account and if additional card is at an extra cost then it means extra burden. Another disadvantage of giving student additional credit card on personal credit card is that parent is unable to maintain good credit as every month payments towards card will be deducted . The advantage of additional student credit card can back track if student incurs heavy debts on presumption that parents will bail him out. This happens if no limits are set and there is minimum accountability . Banks and companies are interested in increasing their market base by luring parents and wards with freebies that in long run become a debt trap.
Before accepting associate student credit card for ward one should look at hidden costs and decide accordingly. No youngster would refuse extra free rides along with online account access and no transaction fees and best way to counter this is with active parental interest in expenses incurred by ward. Compared with associate credit card possessing an individual student credit card ensures freedom of expenditure and choice in benefits. This is beneficial when student is earning through campus jobs leaving credit card for emergencies or major expenses. The credit limit will be lower than what an associate credit card gives but if student is expedient in fulfilling criterion then there is no scope for harassment.
Selection Process: Before deciding on any one associate student credit card one should check availability and hand-outs offered by different credit cards. The associate student credit card should offer rewards that are transferable to associate card and have lower payment limits . With more and more students getting into the free credit syndrome what they need is ownership of cards that are not too stringent on rules allowing certain when it comes to payments. The student, on his part, can extend goodwill by keeping track of card usage; taking parental advice on major purchases to keep them on the loop and most important pay before due date.
associate student credit card s have their own benefits with parents staying away from constant money demand from their wards and being harassed in turn. There are plenty of temptations especially with students living away from home and flaunting ownership of free plastic money. A first time owner is susceptible to unnecessary purchasing and before gifting and signing associate card parents and their wards should work on modalities to control money inflow and outflow. Credit card companies play on emotions by removing all stops in wooing students to subscribe to plastic money. If student or parent is not careful this easy availability of cash could foster a squanderer tendency. Carrying one or more credit cards is a status symbol with students and one bad credit can lead to future credit card ratings . Parents when looking at associate or additional cards should select cards offering modest spending limits as they would be paying the bills. Another area that needs looking into is to avoid cards with financial initiatives as this might lure child into spending more.
Gifting an associate student credit card to ward is acknowledgment of their financial maturity and thereby instilling confidence and responsibility in them .
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