<p>Oh and I have zero credit card debt as well. Even with four credit cards.</p>
<p>Gladgrad, While I agree with you, I will admit that, in the case I mentioned, what bothered me most was that the mom was low-income and the kid should have known better. An interesting side-effect of this was that kid was putting dates on the card (I believe it was almost nightly) and it affected how mom saw the significant other. The so was bending over backwards to be liked by mom when, really, what mom saw was a so who was not bringing out the best in her kid. Ouch!</p>
<p>I’m glad for you, romanigypsyeyes - but what we have always practiced, and that our kids have always internalized, is that credit cards aren’t ways of buying things you can’t afford - they are just ways to pay for something that enable it so that you don’t have to carry large chunks of cash around. Of COURSE it gets paid off at the end of the month - I have never paid one cent of interest in my life. So I don’t see why anyone needs to be “taught” to manage credit card debt. Simply buy what you can afford and use the credit card as a convenience, problem solved. I don’t find it remarkable that you don’t have credit card debt. To me - in the absence of a true emergency (medical, etc.), having no credit card debt should be the norm.</p>
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<p>Students get in trouble with debt if they’ve learned from their parents that credit cards are things you don’t pay in full each month. I don’t even know if my kids even know that there is technically an option not to pay a credit card in full. They, like I, think of them as conveniences so you have the use of your money til the end of the month. I totally don’t even get the concept of debit cards, to be honest. Why would I want to debit my account now versus wait til the 31st of the month? It makes no sense to me.</p>
<p>I wouldn’t advise D1 to have 4 credit cards. I don’t see the need for it, unless to spread out charges among 4 cards, and that’s a bad habit to get into.</p>
<p>PG, that’s good that you’ve taught your children that! So many don’t and therefore their children don’t learn. Some people hate credit cards and that’s fine. Just IMO, they can be wonderful when used correctly.</p>
<p>I wouldn’t advise a young person to have 4 credit cards either. This isn’t the olden days, where Shell only took a Shell credit card, Macy’s only took a Macy’s credit card, etc. Why would someone have a need for anything other than a MC, Visa or Amex?</p>
<p>It’s a long story about why I have four. I only use one. </p>
<p>The only reason I said I had no debt was because of ”Students who don’t have credit cards, by definition, won’t have credit card debt.” That’s all. I’m bowing out now. :)</p>
<p>OP- it is unfortunate what your friend’s son is doing. Looks like he maybe doing it to impress the girl in order to hide his background. He needs feel confident enough to know he doesn’t need to spend money to impress a girl.</p>
<p>We weren’t “allowed” to have credit cards at my parent’s house-- not even my mother, not even a store charge account. She has a kohls charge anyway but pays it in store right after she uses it so my dad doesn’t see anything. I snuck my first credit card into the house, a secured card I wanted to get senior year to at least START trying to establish credit, so I wouldn’t have NO credit history when I graduated.</p>
<p>I’ve had one regular credit card for two years now and have never not paid it in full. I’ve gotten $70 cash back in the last 10 months. I use it for just about everything and then pay it off in full… I used to only use it for certain things, but it got confusing trying to keep track of which charges were on which account (credit card versus debit card). I also have three our four store charge accounts without annual fees that I hardly ever use… just on the rare occasion I clothes shop to get the cardholders sale, then paid off in full that month. No big deal. I don’t see the issue. I’ve never missed a payment. I just use the credit card as though it were a debit card, only buying what I already have cash on hand to pay for, so I can get cash back and establish credit history.</p>
<p>A friend of mine, though, is probably around 25 and has 20k in credit card debt in addition to student loans. At first I was blown away, not understanding how someone our age could rack up that kind of debt-- what could WE possibly need to buy that’s that expensive!? But she has gone on a lot of expensive vacations this year. She knows exactly what she’s doing, she just doesn’t care. For her, apparently living in debt is a lifestyle choice.</p>
<p>Folks who always pay off in full, can get some good benefits (like cash back) and warranties if the cards are used responsibly. We have earned hundreds so far on one credit card and expect to make many hundreds more on it in cash before we’ve had the card for a year. We get 2% back on everything we charge and have never carried a balance or paid a finance charge on the card. It has worked well for us. It is important to read the fine print to avoid nasty surprises.</p>
<p>I’m paying for my kids college , they are paying for everything else and have known this for a while and have saved accordingly. Son is a frosh this fall and has over $8k saved and a student CC with $300 limit with automatic payment already set up to be paid in full each month from savings account.</p>
<p>For those having trouble getting first CC, try USAA if you are a member.</p>
<p>Our D was able to get an AmEx Costco credit card, even tho she had no wallet nor form of ID the other day. She has no job, but the Costco employee said to write the amount we are paying for her for room & board as income, so we did. She was approved instantly. </p>
<p>My niece who has a full-time job & had but cancelled 3 credit cards was rejected when she applied for the same card. None of us can understand it but I have urged her mom to get a copy of her credit report & speak with them to figure out why she was turned down. So far, have no idea if either of them have taken any action.</p>
<p>D was on a credit card with me since 2009. Not sure if we were joint applicants or she was just an authorized user. She has been a full-time student the entire time & will be next year as well.</p>
<p>Both kids were given a CC on our account when they got their drivers license. For us it is a safety issue. College D is given $200/month for her own use, we cover all education and grocery costs. She has an on campus job, a summer job and the occasional childcare job. She covers her clothing, entertainment and other non-essentials. D uses her personal account’s ATM/Debit card for most purchases. She will charge things on the CC if it is more convenient or safer i.e. for any and all online purchases. She keeps track, down to the last $ of which CC charges come out of her allowance. At the end of the month she deducts these from the $200. During some very stressful times we’ve given D the gift of a massage and we’ve filled the gas tank when she’s come home for visits.</p>
<p>In 5th grade D received a mini education in what it means to carry CC debt. She borrowed against her allowance (it was probably $10/month at that time) and I made up a repayment schedule which included interest. I showed her what it will cost if she pays back over the 1,2,3,4, months. Lesson learned!</p>
<p>I have absolute and total trust in both my kids to use the cc responsibly and with full disclosure.</p>
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Yes - I can understand that. I’d be upset if I was the parent only just for a short period of time since the first time it was used inappropriately would be the last time it was used. The mom shouldn’t blame the SO for the actions of her kid. It’s not the SO’s fault what this kid is doing. Why wouldn’t the mom yank this card immediately?</p>
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While I have the same practices with CCs as you do, it’s clear that there are a lot of people who can’t seem to manage CC debt since firstly, they get into debt and secondly, they get deeper in debt.</p>
<p>I’ve had a CC since I was 14 (mother worked in a bank) and was taught before actually getting it that I need to pay it off every month without fail and of course, I was responsible for all usage of that card including any charges that might be incurred if I didn’t pay it off at the end of the month. That advice has stuck. I taught my kids the same thing and it’s stuck with them as well including the ‘don’t buy it if you don’t have enough money to pay it off’.</p>
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<p>It must be nice to have a job and still get $200 a month from your parents. If she saves a lot, she should have a nice amount of savings when she graduates.</p>
<p>Have any of you run into this situation? Last year DD, just before her junior year of college, applied for a student cc at our credit union. She earns around $3000 a year with part-time jobs. Her older sister had obtained that type of card when she was in college with no income because her program was year round and she had no time to work. Anyhow, younger daughter was denied because the credit union took into account her federal school loan debt. The credit limit was small- around $500 and she only had $6000 in student loans. The credit union indicated it was a recently enacted policy.</p>
<p>Gladgrad, SO isn’t on meal plan and didn’t want to eat alone. Mom wasn’t just blaming the SO-- she thought the SO didn’t bring out the best in her kid. I agree with you-- I would have yanked it by now, not sure why mom hadn’t. The kid is actually a good kid-- just stuck between them and trying to make everyone happy. Had a really heavy workload this semester to finish up on time and wasn’t able to get a job. I actually sort of feel sorry for SO because she has no idea why mom doesn’t seem that warm to her.</p>
<p>insomniatic: D is very judicious with her funds. She saves a certain amount from each paycheck. She has a good sum in her account and likes the idea of graduating with a bit of a safety net.</p>
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<p>Well that’s great that she’s doing that. I have no idea how much she makes, but just taking into account the $9,600 allowance she will be receiving from you over 4 years, I am sure she will have a nice safety net.</p>