Question:   The number of student credit card offers that my high school age child receives is mind boggling. How does this happen?

Answer:      Starting in high school, the average student receives any number of credit card offers in the mail.

Once credit card companies realize your teen is old enough to physically swipe a card, it appears as if they work extremely hard to add them to their growing client list.

No doubt this can be frustrating, and over time it feels downright intrusive.

Credit card companies know that young people are ready and willing to embrace the concept of “buy now pay later.” As adults, we know better and should warn our children about this destructive practice.

Often, student credit card offers only increase as your teen goes through college. Companies will set up tables during student expos and offer free gifts to the student in exchange for signing up for a card.

The sad fact is that many students do so, not realizing that opening a credit card is great for the company offering the card - but not so good for the cardholder. This is particularly true when the student doesn’t even have a job.

Credit card companies have a number of demographic resources they use to obtain information. The more information they can get concerning your teenagers, the quicker they will start sending out student credit card offers.

Companies know that many cardholders are loyal to the first account they open and so they aim to begin a relationship with teenagers early on. They know that whoever establishes that credit card account first stands to gain the most profit over the lifetime of the relationship.

As the parent, it is up to you to educate your child on what these companies are really after. Make them read the fine print with offers that seem too good to be true. Cards that offer rewards are much more appealing, so point out high interest rates often associated with these programs.

Ask them which rewards they would actually use - are they really going to use 5,000 merchandise points? Show them potential fees and charges the card may have and if necessary, explain your own experiences with credit card companies.

Point out that student credit card offers may seem appealing, but hold no real value. The idea of “buy now, pay later” can become a dangerous thing - potentially leading to thousands of dollars in debt.

Impress upon your child that paying as you go is a wiser and less risky approach. By teaching your child good financial habits now, they can lead a healthier, happier, and financially free lifestyle.

» Are debt counselors in your future? What should couples know about money before they marry?
If you and your future spouse have not fully discussed view on finances, be sure to cover the topic in detail, as well as many other important issues, before you make the final leap into holy matrimony.

» How do I finally convince my spouse how bad credit card debt is to our financial future?
Do not attempt to confront your spouse, Instead, approach in the spirit of wanting to educate. Let the numbers do the talking.

» Our oldest has substantial long term debt and just lost her job. She is living with us temporarily, but we live on a fixed income and money is tight. What should we do?
Your financial life should not be negatively impacted by an adult child. Furthermore, you are doing her no favors by enabling her bad behavior.

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