As the economy booms, students are increasingly obtaining multiple credit cards. Because it is easy to get into piling of credit card debt without financial education, students should learn the proper use of credit cards before they have one. Professionals, politicians and the general public all provide different viewpoints to the importance of financial education for college students before holding a credit card. Dr. Carla Anderson and Dr. Karen Card’s “Effective Practices of Financial Education for College Students: Students' Perceptions of Credit Card Use and Financial Responsibility” written in College Student Journal and Leslie Richardson’s "Colleges and High Schools Offer Some Counseling for Credit Card Using Students." Written in Republican …show more content…
Dr. Anderson and Dr. Card agree the need of college student have a basic understanding of credit cards before they enter the credit card world. This article was published in College Student Journal and is directed toward general public, but mainly focuses on college students. After providing the purpose of this study and explaining an overview of the credit card debt issue among college students, Dr. Anderson and Dr. Card report a detailed experiment in the article. Dr. Anderson and Dr. Card use formal language, well-constructed paragraphs, and build credibility to establish the differences financial education can make on college …show more content…
The students who learned financial literacy will use credit cards more effectively compare to the students who have no knowledge about financial literacy. Dr. Carl Anderson and Dr. Karen Card’s, “Effective Practices of Financial Education for College Students: Students' Perceptions of Credit Card Use and Financial Responsibility” strongly encourage schools to promote financial education courses. Dr. Anderson and Dr. Card’s article are reliable and believable. They included different perspectives from various credible sources and performed a well-conducted study to make the claim concrete. In a similar way, Leslie Richardson’s, “Colleges and High Schools Offer Some Counseling for Credit Card Using Students" also emphasizes the importance of financial education for college students, however, the article appeals more to audiences’ emotion than providing a well-constructed support to the claim. Therefore, Dr. Anderson and Dr. Card’s article concluded the issue much more thoroughly and
Martin and Lehren’s article “A Generation Hounded by the Soaring Cost of College” addresses the issue faced by current and former college students dealing with large amounts of debt due to student loans. The article presents the reader with stories of former college students who have either graduated or dropped out, and their struggle to pay off their student loans. The article also talks about issues such as students not being informed about high amounts of student loans and why student debts have increased. Martin and Lehren also make the issue of student debt more intimidating by giving examples of high amounts of student loans students have had. The article gives a very hard reality check to anyone reading as to how bad the problem of student debt is.
Carneval, director of Georgetown University’s Center on Education and the Workforce agrees that going into debt until you’ll be earning more money is the way to pay for your education. “The only thing worse than borrowing is not borrowing and not going to college at all,” stated Patrick M. Callahan, president of the National Center for the Public Policy and Higher Education. Lauren J. Asher, President of the Project on Student Debt group, states that the financial risk has increased. Ms. Asher points out that more students graduate with at least $40k in student-loan debt, “People lose control of their finances, and sometimes they make choices you wish they hadn’t made.” Darla M. Horn, an organizer of the student-loan-debt art show in Long Island City, NY realized she hadn’t been aware of how much money she had borrowed while in college. Referring to herself as financially illiterate, she found herself “just signing the documents and faxing them
Taking a financial literacy class would help students learn how to stay out of debt. According to the article, “Finance Course Prompts Debate” by Gina Davis, the class would “cover concepts such as money management, consumer rights, and responsibilities,
Credit card debt is one of this nation’s leading internal problems. When credit was first introduced, and up until around the late 1970’s, the standards for getting a credit card were very high. The bar got lowered and lowered to where, eventually, an 18 year-old college student with almost no income and nothing to base a credit score on previously could obtain a credit card (much like myself). The national credit card debt for families residing in the United States alone is in the trillions (Maxed Out). The average American family has around $9,000 in debt, and pays around $1,3000 a year on interest payments (Maxed Out). Many people have the concern today that these interest rates and fees are skyrocketing; and many do not understand why. Most of these people have to try to avoid harassing collecting agents from different agencies, which takes an emotional and psychological toll on them. While a lot of the newly recognized “risky” people (those with a doubted ability to make sufficient payments) are actually older people who have been customers of certain companies for decades, the credit card companies are actually consciously targeting a different, much more vulnerable group of people: college students. James Scurlock produced a documentary called Maxed Out on this growing problem, in which Senator Jack Reed of (Democrat) of Rhode Island emphasizes the targeting of college students in the Consumer Credit Hearings of 2005
It is a norm and expectation in society today for students to pursue higher education after graduating from high school. College tuition is on the rise, and a lot of students have difficulty paying for their tuitions. To pay for their tuitions, most students have to take out loans and at the end of four years, those students end up in debt. Student loan debts are at an all time high with so many people graduating from college, and having difficulties finding jobs in their career fields, so they have difficulties paying off their student loans and, they also don’t have a full understanding of the term of the loans and their options if they are unable to repay.
Credit cards are something that are almost needed in everyday life now, as most dont have the money available to purchase a car or house and so need credit, thus needing credit cards to help build that credit. Those cards are hard to handle, and receiving applications in the mail daily, and commercials appearing on television don’t seem to make the struggle of staying away any easier. This starts to spark an interest. So people begin to think, "I think I 'm responsible enough to get a credit card, I 'll only use it for emergencies." Then the application process begins and it may take a couple times to finally be approved for one. This only makes it worse, of course, because realizing how long a credit card wasn’t applicable to life, but now
My best friend from my childhood is a marketing agent’s dream. Constantly duped and deceived by flashy ads and predatory marketing, this kid will buy anything - usuall on credit. At last check, my friend had maxed out 4 credit cards to the tune of over $30,000. Very rarely did the money go for something necessary, like accommodation or food, but usually was spent on a multitude of gadgets, toys, and other assorted ‘guy-stuff.’ CDs, a subwoofer, X-boxes and PlayStations, new rims and tires…he even whipped out the plastic to cover the $5,000 for his girlfriend’s new boobs! In my humble opinion, this was probably one of his wiser purchases, but still highlights the fact that my friend has a serious problem managing his finances. Unfortunately, my friend is not alone, but is one of thousands of unassuming college students trapped by credit card debt.
One might say there is a strong argument for the requirement of financial literacy for students in America. Americans continue to have increased balances on their credit cards as well as show a continued increase in bankruptcy filings according to statistics. Even the “baby boomer” generation is no longer exempt from financial hardships, as their generation has recently taken the title of “Fastest Growing Bankruptcy Demographic” from the 25 – 34 year olds (Linfield, 2011). Would it not make sense to say that Americans need to learn how to budget and borrow more wisely? Would not the best place to start be in schools? Well, the answer to that question is not a simple one.
D. Thesis and Preview: It is important to know how to use credit cards to your
With a debt card (credit card) transactions spending so much easier and practical; not to mention many interesting promo promo liver, so more smoothly lah events swipe-swipe, heee ... But be careful with the beauty of the debt because he is like a thorny roses, which if we are not careful to hold it, it can make us hurt by the sharp thorns. Understand that debt is a pleasure sacrifice the future for the present / past. Opponents of the debt is investment, which sacrifices the present / past for future enjoyment.
Without basic knowledge on topics such as loans and insurance, students will be like fish out of water. Many Americans with a lack of financial knowledge have found themselves in
College is when many of us spread our wings and leave the nest. Away from our parents and guardians that protected us from what was out there to hurt us. Commercial banks’ most favorite hunting ground is at college campuses. Young adults who have been told to get a credit card, or buy a car with an auto loan so they can “build credit” because that is a mature thing to do. Well here we are, American college students, ready to do what everyone is tell us to do, start a credit score. But is that really we should do? Obtaining a credit score is an important aspect of finance to many, but credit had developed into a virus after thousands of years that has affected Americans mindset, our behaviors, and how we will live our lives in the future. So
In the times of economic uncertainties, choosing to pay off your credit cards is probably one of the most excellent financial decisions you can take. On the other hand, most people have become addicted to using their credit cards. There are loads of attractions in the world and people often use their plastic cards in order to fulfil their wishes, without realising potential circumstances. In the end, it becomes difficult to pay off the credit card debt and millions of people across the world are struggling with increasing interest rates on credit cards. Hence, the numbers of bankruptcies have significantly increased in the recent past.
The importance of financial literacy and college students As student, finances can be difficult especially if you have not sufficiently allocated regular money earned and spent, financial literacy is the very foundation that everyone can benefit learning from Christina is a 20 years old student, attending Pasadena City College. As a single parent, working a part-time minimum wage job, finances can be difficult, This week her friends have invited her to a weekend Music festival in the Coachella valley, Before even thinking she reply’s “yes “She buys the tickets online using her credit card that has a limit of 700.00-dollar limit the ticket she purchases adds up to 400.00 dollars; When she returns from the trip she notices that she went over
The lack of knowledge plays a big part in the debt young people are getting themselves into. Credit cards are often offered to young adults as soon as they get out of high school. Many take advantage of having a credit card without even thinking about the responsibilities that come with it, instead they think about the things they will be able to buy. In “Generation Debt” the author Tamara Draut says that young people are getting into debt younger than ever before. Two of the reasons that are more costly on young students that hit hard on the budget are car repairs, and travel for students who have families and friends in other states (231). From my experience I know first-hand what it was like to be offered credit cards right out of high school, and I didn’t hesitate to get any of them. I st...