A recent survey has shown that college students use credit cards for
many reasons including purchasing personal items, paying for living
expenses and tuition, and buying clothing. Over 65% of college
students use credit cards and over half have significant credit card
debt. Many college students do not know what their APR is nor can
they pay their balances in full. The conclusion is that college
students should be educated about managing credit cards, interest
rates, and how to develop good habits now that will save them a lot of
money in the long run.
In regard to personal finance and the use of credit, students are
lacking knowledge. The survey suggests that college students
should be educated in financial matters to avoid overwhelming debt in
the future. Paying for college tuition and expenses with credit cards
can be a very costly mistake that can affect the ability to purchase a
new home or car, or pay off student loans. It is crucial for
college students to learn to plan for their financial futures and
accept the added responsibility of managing credit
cards. 55% of all students reported never having
taken a financial management class. As a general rule, college
students should learn to make a budget and stick to it, and to use
credit cards only in an emergency, not for day-to-day expenses.
Classes devoted to personal finance should be made available to every
college student.
