College students have to deal with a very large number of new responsibilities all at once: living on their own for the first time, maintaining a heavy workload of coursework, and managing their finances.

Most college students rush out and complete student credit card applications as a way of gaining access to a reserve of credit for use in emergency situations – or as a backup to their regular source of income.

While student cards can be a great way to start building a credit history for later in life, there are a number of drawbacks to getting college students hooked on credit card use at such a young age.

If you are on the lookout for student credit card applications, here are 5 insights to consider:

1. College students traditionally acquire huge debt problems:
The major news media has featured a number of recent stories showcasing the growing problem of college and university student credit card debt. Many students today are graduating with not only a hundred thousand dollars or more in student loan debt, but they often are saddled with tens of thousands in high-interest credit card debt, as well. This is no way to start out life as an adult.

2. Student credit is a good idea when used in moderation:
On the other hand, having a credit card while in college can be a good idea in the sense that it can help the student build up a credit history. Having a credit score will be useful down the road as the student graduates and decides to buy a car or a home one day.

3. A student should make a few small charges each month and then pay off the balance:
In order to start building up a solid credit history, a college student should make a few small charges for regular expenses like gas and groceries – but then should pay off the balance in full each month.

4. Parents should take an active role in educating their college students about how to use credit appropriately:
College students are usually pretty smart folks, or they wouldn’t be heading off to college in the first place. Still, when it comes to money management, parents of students should really take an active role in educating their kids about how to use credit appropriately. This can include helping the student find the best-possible rate on a new credit card, as well as coaching them on how to use the car and to keep the balance at a reasonable level.

5. Parents who fund their kids’ educations should consider giving them prepaid debit cards instead:
In addition to the new credit card, parents who fully or partially fund their kids’ living expenses while in college should consider supplying their kids with prepaid debit cards. Each of these cards carries the symbol of one of the major credit card issuing institutions like Visa, MasterCard, American Express or Discover – so they can be used anywhere a credit card is used.

But, because prepaid debit cards require no application process or credit check to acquire, parents can buy them on behalf of their kids and then monitor their use. Unlike with actual credit cards, by using prepaid debit cards the college student can never overspend.

Leverage these 5 insights to help educate your college-age child about responsible money management.

Author Bio: Find prepaid debit cards to help the student in your life manage their personal finances at: Prepaid Gift Card Warehouse.

Category: Finances
Keywords: College Student Credit Card Applications,5 Insights To Consider for pre-paid debit cards