If your college-level kid is not into credit cards right now, it is almost certain that he or she will get involved in it sooner or later. Credit cards companies take the first opportunity of acquiring their business as soon as they sign up for enrollment at the university, and fresh college students, giddy at the thought of the open doors of life’s opportunities beckoning at them, usually don’t think twice and sign up for a credit card or two. This is where the problem begins. But if you educate your child early on about the benefits and dangers of credit cards, your son or daughter will have a financially responsible attitude to make it through independent life.

Maintaining a credit card is a huge responsibility, especially for a college student, when perks and luxuries tempt the child in every possible way. Lattes, t-shirts, and practically everything which is consumable or has a barcode can be obtained with a swipe of the credit card. And with a society which puts progressive emphasis on the importance of good credit, your college kid needs to start building his or her rating early on, preferably by taking on a job, and getting first-hand know-how of primary financial skills.

They would have an idea on the importance of money on the first paycheck; take advantage of this opportunity, and teach them about the rudiments of credit card management. First, they must learn to keep set the starting credit limit at a low amount, about $250 to $500; this keeps their spending habits realistic, and even if they max out, the potential damages are not that substantial. Credit cards can also give the impression that they are spending ‘free money,’ and it is your job to teach them that this is not the case; they’ll have to pay the bill when it arrives. There are also fees, interest rates, and payment grace periods to consider, and it may take them some time to understand that credit cards are not as simple as they seem. Try to arrange a financial counseling session with a professional adviser for your kid as soon as possible.

Probably the crucial element in the whole credit card business is the spending habit of the user. If your child is a bit on the frivolous side, it is then necessary that you teach him or her the importance of responsible spending, especially with the use of plastic. The child should learn how to track expenses and how to budget them, determining which ones are necessary or expendable. There must be set guidelines for spending which the child decides to follow at will.

You may help your child in search for an ideal credit card, and those without annual fees, zero percent introductory period, and those with perk points and rewards are usually a good deal, as long as the terms are well understood by the user. It is not hard to emphasize the lurking dangers involved with too much credit, and basic lessons on over-extension, debts with accumulated interest, debt accumulation, and credit scoring would be invaluable tools in the child’s current and future financial life. As always, information is the best measure to get out of trouble; in this case, credit card debt.