Credit card usage requires vigilance

By: Katrina Bruno/Staff Writer

Minimum wage jobs, student loans and personal expenses are making daily finances nearly unbearable for college students, including myself. According to collegedata.com, 57.6 percent of undergraduate students at this University depend on financial aid for assistance to make their way through college.

I am aware that credit cards can be extremely helpful for students if used responsibly. However, I do believe the lack of education on how to properly maintain one’s finances has left many students feeling stressed and helpless when it comes to overcoming their debt.

The required First Year Experience courses at our University should focus on educating students on financial responsibility. The University should also give more recognition to the needs of our students by offering free workshops that educate students about the pitfalls and benefits of having a credit card. This would help students feel more financially independent, secure and confident as they go through their college years.

The “play today, pay tomorrow” philosophy is an appealing trap for students to fall into. Since I turned 21 in February, I have received an influx of offers from credit card companies. Some of the offers are attractive, adding rewards points, air miles and cash-back bonuses to the ability to pay instantly for different items. With ease, I have spent more than what I have in my bank account during the six month period I have had my credit card.
Sallie Mae, a national financial organization that services and collects student loans, released “How Undergraduate Students Use Credit Cards: Sallie Mae’s National Study of Usage Rates.”

According to the study, “91 percent of undergraduates have at least one credit card, up from 76 percent in the same study conducted in 2004. The average number of cards has grown to 4.6, with half of college students having four or more cards.” The study also determined that the average undergraduate student carries $3,173 in credit card debt.
Whether the culprit is fiscal irresponsibility or a need to pay for tuition, books and other necessities, the issue of controlling one’s  finances and keeping out of debt is something that should be taught to students.

College is a great time to make important financial decisions and establish a credit history, but it is also a time where most students swipe their way into a colossal amount of debt. However, I do believe that with a little guidance and education, students may begin to regain control of their finances while learning to make fiscally smarter decisions in the future.