With US is facing its worst recession in three decades, parents should consider this as a warning signal and teach financial literacy to their children from an early age. In fact teaching nuances of financial literacy to children at an early age is highly critical and needs to be implemented in all schools across the country.
A steep 46% increase in the average amount of debt taken by college students has been recorded in the last 5 years only. This shows that more number of college students are relying on their credit cards instead of their parents or other sources of income, in the last few years.
The main cause for this steep climb is because most of them use four or more credit cards at a time. So, by the end of the last year, on an average, a student is left with a debt of $7000. Even with such a bad financial condition, it is a pity to note that one-thirds of them never discuss about credit cards to their parents.
The new Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009, should mark a new turning point for American consumers, especially young people at universities. The act is primarily aimed at protecting college students and young adults, through the inclusion of a requirement that states that card issuers and universities disclose agreements with respect to the marketing or distribution of credit cards to students.
While the new Act can work in favor of those with huge debts, financial literacy is the key to make a universal impact on todays youngsters. It is important for young adults to learn how to build their credit without actually having a credit card. There are online personal money management softwarewhich is very simple to understand and use.
Budget planning softwarecan be used from early college days. This will help students to save and use the same finances to pay for their own education as well. Online tools provide young adults with features that will help them to visualize their earning and spending pattern; set realistic budget goals and also stick to the budget always. Personal money management sites also provide mobile alerts on purchases and monthly balances. - 29866
A steep 46% increase in the average amount of debt taken by college students has been recorded in the last 5 years only. This shows that more number of college students are relying on their credit cards instead of their parents or other sources of income, in the last few years.
The main cause for this steep climb is because most of them use four or more credit cards at a time. So, by the end of the last year, on an average, a student is left with a debt of $7000. Even with such a bad financial condition, it is a pity to note that one-thirds of them never discuss about credit cards to their parents.
The new Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009, should mark a new turning point for American consumers, especially young people at universities. The act is primarily aimed at protecting college students and young adults, through the inclusion of a requirement that states that card issuers and universities disclose agreements with respect to the marketing or distribution of credit cards to students.
While the new Act can work in favor of those with huge debts, financial literacy is the key to make a universal impact on todays youngsters. It is important for young adults to learn how to build their credit without actually having a credit card. There are online personal money management softwarewhich is very simple to understand and use.
Budget planning softwarecan be used from early college days. This will help students to save and use the same finances to pay for their own education as well. Online tools provide young adults with features that will help them to visualize their earning and spending pattern; set realistic budget goals and also stick to the budget always. Personal money management sites also provide mobile alerts on purchases and monthly balances. - 29866
About the Author:
Financial literacy relating to investments and wealth building is a must for young adults. Using online financial tools like personal money management softwareor personal budget calculator can make sorting of financial matters easier and faster.
