These days, teens and people in their early twenties are very smart, but not always about money. So when Visa calls, they grab credit card deals (which are often aimed at college students) and start piling on "deals," only to end up in debt later.
You can help your child if you teach him or her how to use a Visa card for good instead of bad.
Tip #1: Only use your Visa card in an emergency.
Many students think of a "emergency" as needing a new pair of shoes. Obviously, this is not an emergency, and you should never buy a luxury item with a Visa that is already full. Tell your teen that the Visa card shouldn't be used if the answer to the question "Can I live without this?" is "yes." On the other hand, the Visa can be used without question if the teen is in trouble, like if he or she is on a date with a loser or someone violent and needs a quick ride back to the dorm.
Tip #2: Pay off all your Visa card balances.
Many young people with Visas think they only have to pay the minimum amount due and don't have to worry about paying the rest later. So, they end up in all kinds of debt in the future. Make sure your child knows that paying the whole Visa bill every month is the best thing he or she can do. And if the person buys something that can't be paid off in two or three months, it probably doesn't need to be bought.
Tip No. 3: Check your bill.
Visa is a big company, but even they make mistakes sometimes, so cardholders must check their statements every month. So, they won't have to pay for something that shouldn't have been put on their accounts. Visa holders who are younger (and even some who have had theirs for a while) are known to ignore this rule, which will cost them time and money later if they find out they were charged in error.
Tip #4: If your card is stolen, report it right away.
If your student has a Visa card, make sure he or she knows that it needs to be reported right away if it gets lost or stolen. If not, someone could use it to steal his or her identity, which in today's economy happens all too often. If he or she is worried that mom or dad will get mad, tell him or her that you might not be too happy, but you'd rather hear from him or her that the Visa card was stolen than from someone else.
Tip #5 for using a Visa card: Don't be afraid of a credit card.
Lastly, make sure that your kids know that credit cards are not a bad way to exchange money. In fact, they can be very helpful, especially for building credit. Again, it all depends on how you use your Visa. If you are smart, you can start building a high credit score, which will help you in the future.
Your child will learn how to use his or her Visa in the right way with your help.
