Kids Guide to Credit Cards

The economic crisis has made many people aware of the necessity to handle money responsibly. Teens are currently carrying 33% of the debt, according to Larry Burkett, but studies show that they do not know how to handle money responsibly.

 Many of the banks approach teens and college students about applying for credit cards, but neglect to teach them how to handle credit cards responsibly. As a result, naïve teens and students quickly run-up the credit card bills, reach the limit, and have difficulty paying off the balances. This irresponsibility results in low credit scores which prevent the students from acquiring credit to buy new cars, first homes or other products on an installment program.

The banks have made it easy for debt-laden consumers to acquire another credit card without paying off outstanding balances on the first card. As a result, consumers get deeper and deeper in debt. Financial woes are the number one cause of divorce, leading many consumers to adopt a lifestyle of debt for many years.

Our current economic crisis is the worst crisis in the history of the United States and it has affected the global economy as well. Therefore, now would be a good time for teenagers to learn how to handle money more responsibly. It is a fact that many parents never learned how to handle money as well. Teens and students can now join S.A.V.E.M.M., Students Assembled to Value Economical Money Management, a group formed to address these issues  Tell all your friends to join you at this site!

© 2009, Gail Cavanaugh, Cavanaugh’s Business Solutions Unauthorized use and/or duplication of this material without express and written permission from this article’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Gail Cavanaugh with appropriate and specific direction to the original content.