The college years can be a wonderful time for young adults to learn more about themselves and discover what direction their lives should take. It is also can be a financially challenging time as students try to balance tuition, room and board, books and supplies, and related costs, often doing all of this while making little or no money.

Millions of students leave college in debt, with some finding themselves in the precarious position of being unable to pay their financial obligations, and wrecking their credit in the process.

Public Service Announcements – Capiche

Last month the Advertising Council (Ad Council), in partnership with the U.S. Department of Treasury, announced the launch of a new public service advertising (PSA) campaign which has been designed to encourage young adults between the ages of 18 and 24 to take control of their credit and personal finances. One of the spots related to the campaign, Capiche, is embedded within this article for your review. As with all Ad Council spots advertising space is donated by the media.

According to a study conducted by Sallie Mae, more than 50% of college students accumulate more than $5,000 in credit card debt while in school. Additionally, credit card issuer Capital One reported that only 10% of high schools in America teach financial management with 75% of graduating seniors not being able to understand basic investment principles.

Credit Can Help Us Meet Our Dreams Or Create A Nightmare

“When we are able to finance things like a home, a car, or a college education, credit can help us bring our dreams within reach,” said Dan Iannicola, Jr., Treasury Deputy Assistant Secretary for Financial Education. “But as we see in the headlines, those dreams can become financial nightmares if we don’t manage that credit carefully and wisely. We hope this campaign will meet a critical need, educating young adults on the importance of responsible, informed borrowing.”

Related Links

• www.Controlyourcredit.gov
• www.AdCouncil.org
• www.ustreas.gov/

Tags: Ad Council, Capiche, Capital One, college students, credit, credit cards, debt, PSA, Sallie Mae, student debt, Treasury Department

Your student son or daughter is heading off to school in a few weeks and everything is in place. You’ve seen to it that clothes have been purchased, a new laptop has been ordered, and that the student loan application has been approved.

One thing still needs to be done: how will your child access money to pay for books, fees, and incidental expenses while away from home? An ATM card and/or debit card can be very useful, but what if an emergency comes up?

What About An Emergency?

Obtaining a credit card can be an excellent way to provide for emergencies. Instead of carrying around a bunch of cash or losing valuable time while you try to wire him some money, a credit card can help your student get out of a jam right away. Instead of receiving a call at 3 a.m. from the hospital emergency room asking you how you will pay for their treatment, your son or daughter can handle the problem on the spot and contact you later.

Compare Credit Card Offers

When shopping for credit cards, you’ll want to compare offers. Credit cards for students, especially those issuers who take your child’s current educational needs into consideration can be useful, particularly if they offer the following benefits to you:

• Low or zero percent introductory interest rate.

• No annual fees.

• Rewards points toward airline miles or discounts at hotels, cash back, and more.

• Electronic payment options and electronic statements.

• Flexibility: a grace period to allow for your student to pay the credit card invoice monthly without incurring interest charges.

In some cases, student credit cards will require that you, the parent or guardian, co-sign for your child. Without your signature, most issuers will charge your student a higher interest rate if he has little or no previous credit. You can always negotiate directly with the credit card company to ensure that the rate you receive is the lowest one possible.

Managing Credit And Your Money

Of course, you will need to work out a plan with your adult offspring on credit card usage, budget, making payments, and more. Obtaining a credit card for your college student can be an education in and of itself, one that can help them build up their own credit while allowing them to make decisions on how credit is used.

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Tags: credit cards, private student loans, student credit cards, student lending, Student Loans