College Students Often Clueless about Money Matters

Many College Students desperately need to learn money skills. This issue not only causes them to start their adult lives in a huge financial hole, but it also results in huge problems for their parents.

The list below represents typical quotes from college students on the topic of money matters. A basic understanding of money management is a critical part of the daily responsibilities of college and adult life. Although many of the statements seem comical to experienced adults, they illustrate why so many young people get into financial trouble. We suggest parents spend time teaching their students money skills, or provide them with a quick money management course as the one recommended below:

Money issues are probably the top reason students drop out of college. We have created a crash course in money management skills at MoneyManagement101.org – this self study course clearly explains essential money skills that college students need to understand.

Quote examples of College Students:
-Spending $1,000 using my new credit card is way cheaper than writing a $1,000 check, because I only have to pay back $20 per month.
-The bank must be wrong, my account can’t be overdrawn, I still have 10 checks left in my checkbook
-I think someone’s ripping me off on my first paycheck, who are these people FICA and FUTA, and why are they getting part of my paycheck
-I just got my first credit card, I love it, when this one’s full, I am going to apply for a couple more.
-I am already getting credit card applications in the mail, but my mom is too uptight to let me have one. Once I move out, I’m going to get a bunch of cards, and finally get some cool stuff.
-I am going to work 25 hours a week this summer and will make $8 an hour. I’ll be able to afford that new SUV, and still save tons of cash for college tuition.
-I make $80 a week at my part time job and buy lots of awesome stuff. My parents both work full time, but they’re so cheap, they never buy anything.
-Having a ton of student loans doesn’t really matter; by the time I have to pay them back, I’ll be making the big bucks.
-I don’t worry about filling out my income taxes, my dad always ends up doing it for me, I guess he likes doing it. He’s kind of weird that way.
- I heard that collection agencies can’t bother you until you’re out of college.
- If you never leave college, you never have to pay back your student loans.

What Parents and College Students Need To Know about New Credit Card Law

Effective February 22, 2010 credit card companies will be required to follow the guidelines established by the Credit Card Act of 2009

Below is a brief summary of some of the key changes that will impact college students and their parents.

Restrictions on Marketing to College Students:

In exchange for applying for credit, card companies are not permitted to give gifts (i.e. T-shirts, pizzas, mugs, etc) to college students on or near campus grounds

Increased Parental Involvement:

Cards cannot be given to those under 21 unless they get an adult co-signer, 
OR they provide proof that they have the ability (i.e. proof of sufficient income) to repay the debt.

Card companies cannot send prescreened card offers to anyone under 21, unless they have agreed to get card offers.

Card companies cannot increase the credit limit on co-signed credit cards held by college students under 21 unless they have gotten written permission from the co-signer.

Limits on penalties and fees

Over limit fees may not be charged unless the card user has provided permission for transaction over their credit limit.

Increased Disclosures:

Card companies will now be required to disclose the following on the card statement:

-the length of time, and the total dollar amount of interest that would be needed to repay the card balance, if only the minimum required monthly payment.

-the monthly payment amount needed to pay off the the total balance in 36 months
- a phone number to call for credit counseling services.

Card statements need to clearly disclose the required due date, late payment charge, and any late payment penalty rate.

Important Credit Card Law Changes Parents & College Students Need to Know

College Students and Parents Affected by New Federal (Credit Card) Laws
What You Need to Know

Most American college students use credit cards. However, many young people don’t always handle them properly, and often face late fees, increased rates, and high balances. Many of these problems are due to a lack of knowledge, or simply not handling cards responsibly. Although many of these problems are the result of bad habits of young adults, consumer groups believe many of these issues are due to questionable practices of credit card companies. To help address these issues, Congress passed new laws to restrict the ways card companies handle credit card arrangements with consumers.

Effective February 22, 2010, credit card companies will be required to follow the guidelines established by the Credit Card Act of 2009

The changes generally require credit card companies:
-to increase disclosures to card holders
-to provide more lead time or advance notice when changing terms
-to limit their marketing activities on or near college campuses
-to require increased parental involvement in credit card activities of individuals under 21.

More detail of these laws and other money issues affecting young adults and their parents are available on the educational website MoneyManagement101.org
For More Details see specific post http://moneymanagement101.org/important-cred…s-need-to-know/