2020 has been a year of uncertainty – both healthwise and financially for a lot of families. We are stretching your dollar with why experts say this summer should be used as a learning experience for college students.
It’s been a year unlike no other and a learning experience for all of us. Especially when it comes to staying healthy, but experts say the next big lesson we should be taking in right now is your money and whether you were ready for the unexpected.
“One little mistake can add up and put a blemish on your credit report for years,” Nathan Grant, Senior Credit Industry Analyst, Credit Card Insider.
Nathan Grant says as people find themselves unemployed, furloughed or working reduced hours, we should be talking to our kids, especially those about to go off to college.
“With classes starting in the fall, whether you’re working from home or not, there are going to be big expenditures you have to be aware of, and if you already have existing debt, now is the time to get that taken care of.”
Teach them when you start responsible financial habits early in life, it helps you secure better loans and rates in the future, land a job, or rent an apartment.
Many of us are doing more shopping online. As they buy books and back to school supplies, explain why it’s important to use a credit card rather than a debit card.
“With a credit card, it’s not your money on the line. It’s the lenders, they take care of that and fraud cases right away. Whereas if it’s a debit card. That money is taken out of your account you sometimes have to wait weeks to get that money back and that could affect other bills especially during this pandemic.”
Only spend what you can pay off in full so you don’t get caught up in debt. The importance of saving money – even just a little bit each month – in case something unexpected like this pandemic happens again.
Paying on time is another one of the most important lessons you can teach your kids as late payments can last on your credit report for up to seven years.