Dear Kansas Attorney General: My son is getting ready to start college. I am concerned that he may not be as financially literate as he should be. Do you have any tips before he heads away to school?
Dear Kansas Consumer:
As the new school year begins, students across Kansas are heading off to college. It is important for all students to make consumer awareness part of their education this fall. The financial choices students make during their college years can have lasting effects on their future.
Credit card companies looking for life-long customers heavily target young consumers. They often tempt college students with free merchandise or discounts for signing up.
If students decide to sign up for a credit card, they should choose wisely and shop around for the lowest interest rate and fees. A free t-shirt is not worth the debt they might incur with a new card. They should pay off the balance every month, and never sign up for a new card if they cannot pay off the debt they already have.
Students should use caution when starting to build their credit history. Be aware that late payments and unpaid balances will stay on their credit report for years, possibly affecting their ability to purchase a car or secure a loan down the road. Late fees on utility bills can also negatively impact their credit.
College students are also the target of identity thieves and scam artists. Students should minimize the amount of personal financial information they carry. Personal information and passwords are the keys to their identity, it shouldn’t be shared unless they know how it will be used and protected.
Students living in group environments should protect any financial information, including bank statements, pin numbers, credit cards, Social Security cards and checks. This information should be kept in a secure place and shredded before being thrown away.
It is impossible to outline all the risks new college students face, but learning a few simple tips goes a long way to protecting their financial future.
