A college student can have a part-time job, but, parents understand that this kind of income is not enough to cover all kid's needs. And at this point, parents together with their children should make a decision on how they are going to provide financial support to their teenage student kid. Here are the main options: a debit card, a student credit card, cash or making a kid an authorized user of your credit card.
As for a debit card, it is a pretty good option. Taking into account the fact that an 18-year-old young adult does not have a credit history yet, getting a debit card can be a wise decision. You can deposit some certain amount of money on the card each month and your son or daughter is free to spend this money on their everyday needs, or maybe save some part of it for tuition.
Actually, the version with a debit card works just like cash, but a plastic is much more convenient and easy to use. Debit cards are accepted nearly everywhere. And your child will not have to worry about interest rates and penalty fees, so he or she are protected against collecting significant credit card debts. Debit cards, by the way, are gaining popularity with students.
Student credit cards are a good chance for young people to establish credit history. However, using credit cards requires financial management skills, responsibility and a lot of common sense. Really few young adults possess the above-mentioned qualities. And unskillful credit card management can result in enormous credit card debt by the graduation time for a student.
So, all of the student-financial-support options listed above have their advantages and drawbacks. Let's take a closer look at making your kid an authorized user of your credit card.
So, when you make your child an authorized user of your credit card, he or she gets a separate plastic and access to your credit card account. They can legally use your credit card funds anytime. If you have a cash back plastic or some of the point rewards cards, you will get credit card bonuses for our kid's purchases. That is a good thing.
Another good thing is that your kid will not have to deal with credit card applications, agreements, obscure credit card terms and do any other paper work associated with paying credit card bills. But you should keep in mind that it is you who will be entirely liable and responsible for every dollar spent by your beloved offspring. You will have to pay off the balance.
But you should trust and be 100% sure in your child's consciousness and certain degree of responsibility. As your kid's financial missteps can mess up your credit score and credit history really bad. Besides, an authorized user cannot build credit history through using your credit card. Moreover, you can be charged a fee for having an authorized user on your credit card.
So, it is up to you to choose how you want to support your kid in financial terms. Or, maybe your child is mature enough to make his or her own decision and choose a credit card or one of credit card substitutes. Then you are welcome to select credit card and apply at Select-Credit-Card.com.
Evelyn J. Fancis writes mainly about credit card applications for bad credit (http://www.select-credit-card.com/Bad-Credit-Cards-947886-page.php). Her other interest is college students and money and student credit cards.