Budgeting

Budget Planning for Youngsters

Social stereotyping has become a way of life. Wherever we look we form yet another stereotype. Take the case of the relationship between students and their credit cards. One common stereotype that we all seem to have faith in is that no student has the capability of taking care of his own finances. We assume that just because someone is still a teenager (s)he lacks the discipline to curb her/his spending. Now, is that an accurate picture of the millions of students populating our world? I doubt it. In my experiences with younger people I have found that many of them are very well-grounded and are quite prepared to look after their expenditure quite effectively.

Of course, not all youngsters are really prepared for the big bad world of credit cards. That certainly takes a little getting used to. There is so much jargon that must first be understood. There are so many rules that have to be followed. There are so many monthly bills that have to be paid. In addition to all that, there is the immense ease with which a credit card allows you to take care of your many expenses. Once you have left the safety of your home and are living on campus, the new-found freedom can feel amazing. However, this new-found lack of restrictions can lead one to lead an entirely different lifestyle and spend like crazy.

College is an entirely different experience. It can be quite a shock if you have not prepared for it. And credit cards are one of the factors that add to the newness of this life. That is why more and more colleges are taking it upon themselves to teach their students about the importance of using a credit card. And colleges are not alone. Credit card providers have also decided to put an end to the “opportunistic” label. They too have come up with courses (some of them certified courses) to inform young students about the various aspects of using credit.

Many youngsters behave as though credit cards are nothing more than free money. Several financial education courses teach teenagers about the positives and negatives of credit cards. A college-goer could make great use of some credit card rewards by simply using her/his card sensibly. Reckless usage of credit cards can result in credit card debts. Students should be aware of this danger before they make a habit of going over budget. A credit history can haunt one for years to come. But you can escape that by using your cards sensibly.