Standard Chartered NUS card Student credit cards

My cousin had a credit card when she was 18 years old. Today, as a successful business woman 35 years old, I bet she is half done paying it off. That's why I'm suspicious of students with credit cards. Granted, I would not trust a 18 year old with a Chia pet, let my bank account. But quite a few people I'm wrong. As it turns out, there are some benefits:
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"And this boy, the bank's ownership papers about you."


Students learn to Credit Cards

Teach them well ... they learn to have a credit card. And not kill themselves with it. It's kind of like knives and fire, unless your day job involves the circus, you probably will not let your kids near that.

But you can not give your children go through life never cut things, or roasting a marshmallow. At some point, they will have to deal with something dangerous. And there are few things more dangerous than a 18-year-old with a credit card.

If they've never been before, they go bonkers the second they get it. They are financially self-destruct a lack of experience. This is why Arthur Turo, a practicing CPA, leaving his two sons credit cards:

"They supplementary cards. But I make sure they know how to keep accounts. They have to show me the receipts and statements at the end of the month, otherwise I took the card back.

When they buy something I make sure to repay them all, including interest. I want them to understand how much more they actually pay when they buy on credit. If I ever their debt, I stop their allowance for two months.

I think the lesson has sunk in. They never over-spend, and they will tell you they do not even like to buy on credit. Even when they can. "

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Student discussion

"We maxed all your credit cards while you're at lunch. This debt counseling course is gonna be hands-on."



Arthur's views are shared by some parents and youth counselors, who feel that:

    Credit Cards educational
    Handling credit required experience
    This reduces the feeling of financial dependency

We will add a fourth: the right student credit cards are low-risk.


1. Credit Cards educational

At some point, we all have to deal with debt. It's probably better if we learned, when we are thrown off the deep end. Consider credit card debt as the little pink bike with training wheels, it's a baby step, before we deal with whoppers like a mortgage.

Parent Andrea Huang gave her 19-year-old daughter a supplementary card for that very reason:

"I think it's important to learn about the difference between debit and credit, the interest is charged, and the different fees charged by banks. As a parent, you just sit down and talk about it to your children, it is over their heads. all the figures and it is very boring.

As a credit card, as you supervise the use, is a hands-on tool. "



"The third time you roll-over debt, are those your fingers instead. I will never lie to you boy"



A youth counselor, known only as Alex, adds:

"Many of the Poly or Uni students, that particular age group, will soon or be able to make their own cards to get. Before they do, they should the terms and conditions to understand, and how much hot soup they might land

Parents should strictly supervise their child's use of the first credit card. Make sure that their children understand before they apply for their own. Especially when and how to pay the bills. I've met a lot of students with credit cards, which do not even understand how compound interest works. "


2. Handling credit required experience


Old people on the steps

"I have experience with credit order. I am 67 and I beat that loan shark at 200 yards, easy."
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Humans are not wired things that are not ours to keep. Our lizard brains do not understand, for the same reason it can not understand why someone else's popcorn in our legs are not ours to complete. That is why the management of credit is so hard: It is dealing with money that is not really ours.

Alex says the maturity to be developed:

"We found that teenagers who have access to credit suddenly tend to be in debt. Whenever they went window shopping, for example, they suddenly realize that 'Eh, any of these things that I can walk in and buy now.

Different people have different coping mechanisms. If someone is slowly introduced to the concept of credit, parental supervision or student cards, they develop psychological insight needed to manage it. But maturity and self-control need to be cultivated. "

Alex suggests that:

    Students' receipts so they can track the full extent of their spending
    First time card users check transaction history once a week
    Parents impose a cut-off (ie confiscate the card after the charges last $ X)
    Students are taught about billing cycles and repayment methods


3. This reduces the feeling of financial dependency


Kid scoldedKid rage

"I was not stealing father's money. I was exhibiting financial independence."



According to Alex, the great benefit of students with credit cards is that:

"Students realize they can pay for things themselves. If there is a fault, as they spend $ 200 and then have to pay it back in two months, okay this is bad. On the other hand, they have a feeling that they cleaned their own fault.

It is a way of feeling reduce financial dependence on their parents. "


4. Student credit cards are low-risk

Maybe you are still worried about your teenager gets a credit card. Or maybe you are a student and want to get the first piece of plastic. Well, there are a lot of low-risk options for you.

The Standard Chartered NUS card, for example, has a credit limit of $ 500 (typical for student cards). For the first time credit card users, it's a good safety cap. You can not walk into a store and buy an iPad with it