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Post by Linda on Jun 30, 2015 20:00:41 GMT
When college came around, and there were credit card sign up tables with all kinds of free gifts, I was surprised how many people signed up without understanding how it worked. I helped a few friends figure it out and make a simple budget. This. I wasn't taught how to use credit. I signed up for EVERY SINGLE ONE OF THOSE TABLES when I started college. Low limits, but to someone working a very part time job, paying them off at the end of the month wasn't as reasonable as I imagined. I had poor credit management for a while and went into my marriage with credit card debt for stupid things that I wouldn't have bought if I hadn't had the credit card(unfortunately so did my DH). It was a hard lesson to learn while we were trying to get on our feet. It's so easy to screw up your credit in a short time, but takes so much longer to repair it! We haven't broached the credit card thing with DS yet, but I'd better do it before orientation now that you reminded me about those tables set up at school! I had forgotten all about that little trap. I will agree with this - it IS important to understand how credit cards work and how interest is calculated and what all the fees etc...are - I have taught this to my older two along with balancing a chequebook and budgeting and all other sorts of how money works bits...all the stuff I learnt the hard way as a young adult. |
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Dalai Mama
Drama Llama
La Pea Boheme
Posts: 6,985
Jun 26, 2014 0:31:31 GMT
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Post by Dalai Mama on Jun 30, 2015 20:18:21 GMT
I got my first credit card when I turned 18 too. My mom was in the banking industry and encouraged me to get one. I just paid off the balance every month which was fairly easy given that the credit limit was much lower than my monthly cash flow. By the time DH and I purchased our first home we managed to get a great rate with only 5% down (zero down mortgages are against banking regulations here).
ETA, I've never balanced a cheque book; I've never had to. My mother taught me to use my chequing as an imprest account, transferring just enough money from my savings account every month to cover rent and utility cheques. Now, with ebanking, I can't remember the last time I wrote a cheque.
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Deleted
Posts: 0
May 18, 2024 19:37:53 GMT
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Post by Deleted on Jun 30, 2015 21:51:57 GMT
I only read the first few posts, so these may have already been mentioned: have medical powers of attorney with a HIPPA release drawn up and signed. If there is an accident, heaven forbid, you can make medical decisions for her. Also, she may want to give you a general power of attorney (or maybe limit it to financial matters, either way) so you can assist with her banking and financial needs. Alternatively, it may be enough for you to be a joint owner on her checking account.
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Post by hop2 on Jun 30, 2015 22:17:41 GMT
A credit card has more built in protection than a debit card. For one thing if it's stolen and used it first screw up your bank account for weeks.
Banks here offer what's called a secured credit card where your credit limit is a set anout that you agree to leave in your bank account. DD has it at $500. So she has a $500 credit limit. If she defaults they take the $500. ( after certified mail notice )
It was the only way to get her a CC without a cosigner
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Post by 950nancy on Jun 30, 2015 22:42:37 GMT
My son was hit in a head on collision on his way to high school his senior year. He was 18. The medical bills, lawyers, and insurance have been a nightmare. Thankfully he is letting my husband do a lot of it, but he doesn't have to. We are going to try putting the settlement into a trust fund so his current 21 year old self doesn't do stupid 21 year old things with the money. Honestly, it made him grow up way faster than I would have wanted.
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my3freaks
Pearl Clutcher
Posts: 3,206 
Location: NH girl living in Colorado
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Post by my3freaks on Jul 1, 2015 0:05:03 GMT
Have her get a credit card with a low limit to it. Have her use it then pay it in full each month. I was thinking the same thing. I think my first credit card had a limit of $200.00 or something like that.  I doubt anyone offers such a low limit all these years, later, but she can certainly start with a low limit by today's standards.  My 19 year old son has a full time job, and "adult" accounts at Chase bank. He researched credit cards online and decided to apply for a Capital One card with no annual fee, just to start building his credit. His card only has a $300 limit, so it's good to get him started building, but not anything that could get him in trouble. He uses it a small amount and pays it off every month. |
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I doubt anyone offers such a low limit all these years, later, but she can certainly start with a low limit by today's standards. 