Summary:
Credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder’s promise to pay for these goods and services in certain amount of time. It is basically borrowing money for personal use from the banks.
There is no secret that many youngsters like college students are sucked into credit card debt. But now it seems the problem can start even before the first year. According to Jumpstart coalition for Personal Financial Literacy, nearly the third of high school seniors own a credit card of their own or one cosigned by a parent because people under the age of 19 can’t apply for credit card. It’s really hard to believe how many teens have credit card and how many are in debt already. It was shocking to learn that kids that are not even old enough to drive are receiving card solicitations. Bodnar, editor of Kiplinger’s Personal Finance magazine disagrees that young people learn financial responsibilities by using credit card as a lot of parents stated. She adds that “it’s funny money for them. It’s not real. It’s a license to spend, and they’re not learning how to manage money on their own.”
Similarly, Adam Wehr’s struggle with the same credit card debt right after he graduated from high school. He adds that he had no idea about interest rates and late fees so he kept spending money from his credit card without thinking that he would have to pay a lot more than he is spending.
Young people still don’t master the tricky nature of credit. They don’t understand the fact that many of the cards have hidden fees. A typical mistake that most parents make is expecting children to make the leap from a childhood savings account to managing a credit card. She states that if to boost children’s financial IQ "They need to know how credit card works and what do you do when the bill comes? Why is it important to pay on time? and How do interest rates work?" Parents also need to set limits on children’s credit. These ways can help children to learn the responsibility of handling credit cards and won’t suffer debt at a very early age.
Connection:
Yes it is fact that credit cards always come handy when you need money but it is in ones hand to make the payments on time so they won’t fall in debt of interest rate charges. It is parent’s responsibility to let their children know about the advantages and disadvantages about credit cards, interest rates and how it works. Once the credit card companies send you the bill for the month, they always ask you to make the minimum payment of the bill which is around $10 and that’s what most of the teenagers do and they end up falling in debt because then the banks start to charge interest and you end up paying the double of what you spent.
Reflection
Credit cards wont be considered dangerous if students acknowledge the downside of the credit cards and use it accurately. They won’t have to suffer debt if they get to learn about the interest rates and the only way it will be possible if parents teach them about it. Also Banks that provide credit cards needs to let their customers know about the interest rates that they charge if the bill is not paid on time. Taking couple of steps towards this problem will definitely improve the number of teenagers falling in debt.
انسداد المرحاض بالمناديل
ReplyDeleteافضل طريقة لتسليك المجاري بمواد طبيعية