I received my very first credit card today. Yep. Someone better barricade my door before I get out and buy things I don’t even need just to try it out! But the burning question that comes along with this little piece of tempting plastic is, “Am I ready for the responsibility that this plastic joy requires?” I guess only time will be able to answer this question. My hypothesis is that I will be responsible based on the sound financial advice I’ve been given:
- Do not operate on a paycheck to paycheck budget.
- Begin with a credit card that has a small purchasing limit. (Mine is $500.00)
- First and foremost, pay off the statement balance every month so no interest is charged.
The best piece of advice I’ve ever received from family members is: “Live beneath your means.” This means learning self control (instead of barricading the door) when it comes to really wanting that new dress or pair of shoes and having an emergency fund set aside for times when an income may not be available.
According to credit.com 93% of undergraduate college students have at least one credit card and the average undergrad carries $3,173 in credit card debt. No doubt, much of this amount was accrued for nonessential items that wouldn’t have been purchased without the “plastic ecstasy.”
I have one semester of college left, and I hope I can remain debt-free. Fortunately, I learned some money management skills from my family at a young age. One of the most important things parents can do for their children is allow them to practice making money decisions when they are young, even if they make mistakes. Hopefully, they will learn from their mistakes and use this knowledge to make more informed decisions in the future.
No, Sailor. You can’t use the credit card to buy catnip.