Student credit cards are targeted to young people who may never have owned a credit card before and who may have little or no established credit history of their own. Income requirements are often low, and these student cards usually come with low credit limits for new cardholders. Student cards also tend to have limited credit score requirements, so credit card issuing banks offset uncertainties about creditworthiness by extending lower credit limits and charging higher interest rates. Students who sign up for a credit card should be conservative with card use and limit their usage to avoid falling into debt.
Student Credit Cards
Find the best credit card for college students with little or no credit history.
(HeroImages/Getty Images)
Compare the different offers from our partners and choose the card that is right for you.
Advertiser DisclosureBy U.S. News Staff Updated January 2, 2019
- Discover it® Student Cash Back: Best for students with a Cashback Match.
- Discover it® Student chrome: Best for student gas rewards.
- Bank of America® Travel Rewards Credit Card for Students: Best for student travel rewards.
- Wells Fargo Cash Back College Card: Best for student cash back.
- Chase Freedom Unlimited®: Best for student cash back with unlimited 1.5 percent cash back.
- Journey® Student Rewards from Capital One®: Best for students building good credit.
- Discover it® Secured: Best secured card for students.
Methodology: U.S. News evaluated nationally available credit cards available to students from credit card issuers in the J.D. Power 2018 Credit Card Satisfaction Study top 10. Cards were evaluated based on rewards earning rate, sign-up bonus value, annual fee, zero percent introductory APR, benefits, foreign transaction fee, J.D. Power ranking and ongoing APR.
U.S. News Survey: 40 Percent of Students Aren’t Taught About Credit Cards Before Getting One
U.S. News ran a nationwide survey of college students who own credit cards, asking them about their credit card habits and knowledge. The results conveyed that many students don’t have adequate knowledge of credit cards and aren’t currently using best practices needed to build a strong financial foundation.
Forty percent of respondents weren’t educated by their parents or teachers on important topics related to credit usage and management before getting a credit card. Education is critical, says Bill Hardekopf, CEO of LowCards.com, because while credit cards can be a great financial tool, they can also be a financial burden. Credit cards come with all sorts of protections and benefits including not having to carry cash, a rewards program, and an accounting system to know how you spent your money, along with the fact that you’re building your credit history. But if you don’t pay the balance off there is a stiff penalty in the form of interest.
(Conducted using Google Surveys - April 2018)
More than 25 percent of student respondents either don’t know how to check their credit score or don’t know what a credit score is. However, 42 percent of students with credit cards are on the right track, checking their credit scores within the last month. Hardekopf advises, “Your credit score is one of the most important things you have as an adult … and you start building it right from the get-go. Similarly, you can start messing it up right from the get-go.” If that happens, it takes a long time to overcome problems with your credit score.
(Conducted using Google Surveys - April 2018)
More than half (57 percent) of student respondents are maintaining or increasing their credit score. Only 10 percent are aware of a decrease in their credit score. However, 33 percent don’t know if their credit score has changed.
(Conducted using Google Surveys - May 2018)
More than half of student respondents (59 percent) reported that they carried a balance on their card at least once in the last year, with 29 percent reporting that they carried a balance six or more times in the last year. Once you start carrying a balance, it can be very difficult to get out of debt because of compound interest, and it can hurt your credit score if you are utilizing a large portion of your available credit.
(Conducted using Google Surveys - April 2018)
Half of respondents said they have relied on a credit card at least once in the last year to afford life essentials, but only 21 percent have made it a regular practice, doing so more than five times within the last 12 months.
(Conducted using Google Surveys - April 2018)
The results of this survey underscore the need for better credit education for young adults. Credit cards can be a great tool to start building a credit history while making regular purchases, but if not used effectively, they can make life after college more difficult and expensive. Hardekopf warns students that credit cards are “only supposed to stop you from carrying cash - you still have to pay it back in full every month, and if you can’t, then you need to stop using it.”
Survey methodology:
- U.S. News ran a nationwide survey through Google Surveys in April 2018.
- The sample size was the general American population and the survey was configured to be representative of this sample.
- The survey asked 10 questions relating to the credit habits and knowledge of students.
- All winning answers were statistically significant at the 95 percent confidence level.
- See the full survey data, questions and results.
How Credit Cards Work
When you use a credit card, the bank pays the vendor or merchant on your behalf. The bank is relying on you to pay it back with interest.
When you first get a credit card, your available credit will likely be very low. But over time, as you prove yourself to be responsible and reliable about paying your credit card bill, banks will typically make more credit available to you in addition to more cardholder perks and advantages.
"Your payment history makes up a large part of your credit score," says Beverly Harzog, consumer finance analyst and credit card expert at U.S. News. "So to build a great credit history, it's essential to pay all of your bills on time."
However, just because a bank offers you a credit card or increases your credit limit doesn’t mean that you can actually afford to charge your card up to the maximum. If you are late with payments or run your cards up to the limit, your credit score will suffer.
Why College Students Should Have a Credit Card
Building your credit
While incurring consumer debt on a student’s income is risky, credit cards allow college students to build a credit history, which can help make life after college easier and more affordable. According to the 2016 Financial Services report from Student Monitor, students with a credit card in their own name report having credit scores that are 50 points higher on average (679) than students who don’t have their own credit card (629).
Getting your first job
According to the Society for Human Resource Management, nearly half of employers surveyed conduct background credit checks on potential hires. However, 11 states thus far have restricted or prohibited employers from using credit background checks in the hiring process.
Getting insurance
In most states, insurance companies review credit reports when determining whether to issue an auto insurance policy. For example, according to Consumer Reports, single drivers who had merely ‘good scores’ paid between $68 and $526 more in car insurance premiums each year than those with excellent scores.
Getting an apartment
A good credit score can also help you get approved for an apartment or qualify for a lower deposit. According to TransUnion, one of the three major consumer credit bureaus in the United States, 43 percent of landlords run credit checks on applicants as part of their screening process, and 48 percent consider an applicant’s credit report to be one of the top three factors they look at when it comes to apartment leasing applications.
An established credit history can also help you qualify for a lower deposit requirement, or no deposit requirement, when turning on gas, electric and other utilities.
Rewards
Banks offer a variety of rewards programs designed to encourage you to use your card. For example, some cards offer cash back on purchases every month. Others offer points or miles for every dollar you spend on the card, which may be redeemable for cash, merchandise, travel and more.
Cardholder benefits
Nearly all credit cards come with a number of basic benefits and privileges for cardholders. These benefits commonly include the following perks:
- Free FICO credit score with your monthly statement
- Extended warranty protection on items bought with the card
- Roadside assistance
- Limited/zero liability for fraudulent transactions
- Travel insurance
- Free or discounted collision insurance on rental cars
- Extended warranty and return protection
Additionally, some issuers are providing access to quality financial education developed specifically for first-time credit card users. JPMorgan Chase, Discover and Capital One have each expanded their personal finance education sections on their sites to help educate younger customers. This is a particularly important feature, says Harzog. "Not everybody's parents are going to tell their kids this stuff at home," she says.
Protecting against fraud and theft
Both credit and debit cards help to minimize the need for students to carry cash, which itself is a security benefit. Additionally, if your card is stolen and you are a victim of fraud, your liability is limited to $50 under the Fair Credit Billing Act, as long as you report the fraud or theft within two days of discovery. Liability is limited to $500 if the cardholder reports the theft or fraudulent activity within 60 days.
In addition to these consumer protections required by federal law, the four major credit card issuers (Visa, Mastercard, American Express and Discover) have implemented a zero liability policy, which is a guarantee that the cardholder will not be held responsible for any fraudulent charges, provided the fraud is reported in a timely manner.
Getting Your First Credit Card
There’s no one credit card that’s a perfect match for all students. Each student has unique needs and uses credit cards in different ways. Some students need to carry a balance; others use credit cards to maximize rewards or build their credit history.
"Before students apply for a credit card, they need to have no doubt that they are ready for the responsibility," says Harzog. "Credit cards are a great way to build credit while in college. But students need to make sure they keep low balances and pay bills on time. This will keep them out of debt and on their way to an excellent credit score."
When you apply for a card, the card issuing bank will look at your credit report to see if you are a good risk for that particular card. The issuer purchases your credit report from one or more of the three major U.S. credit bureaus: TransUnion, Equifax or Experian. The issuer will consider:
- Your current credit accounts
- The total amount you owe to various creditors that report to the bureaus, including credit card issuers, utility companies, cellphone and internet carriers, car financing companies and more
- Your payment track record
- Your credit usage ratio: This is the amount you owe, divided by your total available credit. A lower usage ratio is better for your credit score.
- Your credit score
In most cases, the credit score lenders will look at is your FICO score. FICO stands for “Fair, Isaac Corporation,” which is a private company that acts as a credit information clearing house. The three major consumer credit bureaus, TransUnion, Equifax and Experian, all get data from FICO, which also developed the algorithm that credit bureaus use to generate your credit score.
Your FICO score represents the likelihood that you will pay your debts on time. Scores range from 300 to 850, with a higher number indicating a better score. While there are other credit scores available to consumers, the FICO score is used by most lenders.
Your FICO score is based on the following factors:
- Payment history: 35 percent
- Debt: 30 percent
- Length of credit history: 15 percent
- New credit and inquiries: 10 percent
- Credit mix: 10 percent
If your application, income and credit history meet the bank’s issuing criteria, which is usually relatively lax for student credit cards, then your application is approved and you will receive a new credit card in the mail in seven to 14 days, typically. According to Student Monitor, the average credit limit for all college students is $1,315 as of spring 2016.
When you use the card, the bank pays the merchant or vendor, and the bank then sends you a bill at the end of the monthly billing cycle. You are responsible for making at least the minimum payment due by the due date on the bill, which by law must be not less than 21 days from the date the bill is mailed. These 21 days are the interest-free grace period for purchases, so if you pay off all your purchases for that month by the due date on the bill, you won’t face any interest charges on these purchases.
Credit cards for people younger than 21
The Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 restricts the ability of banks to issue credit cards to individuals younger than 21. However, you can still qualify for a credit card if you’re younger than 21 if you can demonstrate the ability to repay credit card debts. Be prepared to provide written proof of income. You’ll probably also need to have established some credit history already, such as making student loan payments, rent, phone bills or utilities on time. Those younger than 21 must either apply online or through the mail.
Become an authorized user
You may be able to get a card issued on your parents’ or guardians’ account if they add you as an authorized user. The bank will issue your own card on the primary cardholder’s account if they request it, but you and your parents will be jointly responsible for paying off all charges. This means if you don’t pay, your parents or guardians will be legally responsible for making good on the debt. Most major credit card issuing banks will add an authorized user even if the user is younger than 18. The account holder may have to pay a fee to add an authorized user.
Cosigning
You may also consider asking a parent or other responsible individual to cosign for your credit card by taking responsibility for the charges if you don’t repay them. If the borrower doesn’t pay back the loan or pay the bill on time, or defaults, both parties’ credit reports will take a hit. If the borrower defaults, the cosigner must pay, or potentially face the same collection actions as the borrower, including lawsuits, judgments, garnishments and levies.
Some card issuers, including American Express, do not accept cosigners for credit cards.
Understanding Your Card Features
Your credit card issuer will mail or email you a bill every month. You can also view your bill online at any time by creating an online account and logging into your card issuer’s website.
Here are the most important things you should understand about your bill:
- Total balance: This is the total amount you owe at the time the statement is issued.
- Activity summary: This summarizes the charges and credits to your account during the month. Here you’ll find the aggregate totals of all of the payments, credits, purchases, interest charges, fees, balance transfers and cash advances for the date range on the billing cycle.
- APR: Your annual percentage rate is the interest you pay to borrow money from the credit card issuer. Purchases, cash advances and balance transfers may each have a different APR.
- Minimum payment due: This is the lowest payment you can send to keep the account current and avoid a delinquency on your credit report. You need to pay this to avoid a late fee and a penalty APR.
- Payment due date: This is the end of the grace period, or the date by which the bank must receive your payment by in order stay current and avoid any interest charges on the balance.
- Credit line: This is your overall credit limit or the maximum you are authorized to charge to your card.
- Credit available: This is how much credit you have left before you hit your borrowing limit.
- Rewards: This section will tell you how much you have earned in rewards, whether as cash back on purchases or in the form of points or miles.
- Your FICO score: It is common for student credit card issuers to provide your current credit score from one of the major credit bureaus for free on your statement.
The Costs of Credit Cards
Of course, using credit cards can be costly. Students should understand and compare the following fees and terms to find the most valuable credit card for their needs.
Understanding your APR
APR, or annual percentage rate, is the interest you would have to pay on your balance after your grace period expires.
Credit card issuers commonly set their card APRs as a function of the federal prime rate. Your credit card’s terms and conditions statement, for example, will commonly express your APR as “U.S. prime rate plus 16.99 percent.” If the federal prime rate is 4.75 percent, that would equal an APR of 21.74 percent for any purchases not paid off by the end of the grace period. Therefore, when federal interest rates rise, your credit card interest rate usually rises too.
How credit card companies calculate your interest
You don’t have to pay any interest charges on purchases as long as you pay off the balance in full by your due date. The amount paid off before then isn’t counted in the total daily balance. If you only pay part of the balance by the end of the grace period, the remaining balance you carry over will accrue interest that will appear on your next billing statement.
Card issuers use different methods to calculate interest charges on the carried balance within a single billing statement. For example, Discover uses the daily balance method. That is, it determines your total interest for each billing statement by calculating your average daily balance of that billing statement (every day’s total balance including the unpaid amount and any new charges) and multiplying it by your daily interest rate (your APR divided by 365). Additionally, if you fail to pay off your entire statement balance by the due date, any new purchases may not receive a grace period and begin accruing interest immediately. Also, cash advances and balance transfers usually begin accruing interest immediately because there are no grace periods on these transactions.
You can quickly fall into a credit card debt hole by carrying a balance and continuing to charge new purchases to your card.
How long will it take to pay off a balance?
If you carry a balance on a credit card, you will have eventually pay off the entire amount you borrowed plus interest. With APRs over 20 percent, the effect of that compound interest can be quite powerful over time.
How much you pay every month toward your balance makes a significant difference in your total interest owed.
The example below shows the money saved on interest from making the bare minimum payment versus a larger payment every month. The starting balance is $1,000 and APR 23.76 percent. The minimum payment is calculated using Discover’s policy, which is the greater of:
- $35 or;
- 2 percent of the outstanding balance or;
- $20 plus interest charges, late fees and fees for debt protection products enrolled in after 2/1/2015
How long will it take to pay off a $1,000 balance at an APR of 23.76 percent?
| Starting Balance | Monthly payment | Time to pay off | Interest you’ll pay |
| $1,000 |
$35 (minimum) |
3 years, 7 months |
$488.25 |
| $1,000 |
$70 |
1 year, 5 months |
$186.87 |
| $1,000 |
$100 |
1 year |
$125.44 |
Doubling your minimum payment from $35 to $70 per month cuts your total interest by nearly 62 percent. For this reason, you usually want to be as aggressive as you can in paying down a credit card balance.
Introductory APRs
Some cards provide an introductory reduced APR, or even a zero percent APR for a number of months after you open the account. Some cards charge zero percent APR for the first six months on purchases and a lower APR for the first six months on balance transfers. Depending on the issuer, this introductory APR may be lost if you miss a monthly payment.
Penalty APR
Some cards charge a penalty APR, commonly 29.99 percent after just one late payment, while others won’t impose a penalty until you’ve been late twice within a six-month or one-year period. Your penalty rate could reset after a certain number of months of on-time payments, or the bank could charge you the penalty APR indefinitely until you pay off the balance.
The best course of action is to maximize your available rewards on the card while avoiding paying interest altogether. “Never carry a balance,” says Harzog.
Cash advance fees
Most credit cards allow you to get cash out of an ATM, but any cash advance usually has an APR greater than the APR on purchases. Most cards will also charge a flat rate ($5 to $10 is common), in addition to an immediate percentage of the cash advance itself. Also, there’s no grace period on cash advance transactions.
Annual fees
Some cards charge an annual fee, usually between $35 and $50. Sometimes card issuers will waive the annual fee for the first year; otherwise, it’s added to your balance on the first bill you receive. Cards with annual fees may have better rewards and benefits than cards with no fees, so it can be worth paying the fee if you use them enough to justify the fee.
Foreign transaction fees
Some cards will charge a fee for overseas or foreign currency transactions, typically between 1 and 3 percent. Some cards may have different fees for different currencies, so it’s important to read your card’s terms, rates and conditions statement before traveling or ordering merchandise from other countries so you don’t get blindsided by foreign transaction fees on your statement.
Foreign transaction fees could be an important consideration for exchange students or students who study abroad.
Late payment fees
If you have a balance and fail to make at least your minimum payment by the due date, your card issuer may charge you a late payment fee, which it will add to your balance on the following statement. For most consumer cards, federal law limits late fees in most circumstances to $27, or $38 for repeated late payments within six billing cycles, as of Jan. 1, 2017.
Some cards, including the Discover it® Student Cash Back, do not charge a late fee for the first missed payment. As mentioned above, late payments could trigger a penalty APR of as much as 29.99 percent, in addition to the fees.
Grace periods
The grace period is the time between a purchase and the due date for that billing cycle. You will not be charged interest on any purchases provided you pay your card off before the grace period for that billing cycle expires. However, interest on cash advances and balance transfers may begin accruing immediately because issuers do not often have grace periods for these transactions.
If you don’t pay your new balance in full every month, it’s possible you won’t get a grace period on new purchases. Always understand your card’s terms and conditions if you carry a balance.
What happens if you don’t pay your bill
Failure to pay your credit card bill can lead to serious financial problems. Your credit score will take a big hit, especially if you have accounts sent to collection agencies or listed as defaults or charge-offs. A poor credit score can make it nearly impossible and much more expensive to access credit in the future. It can affect the rates you pay for insurance, and it can potentially hurt your ability to get a job, an apartment, a mortgage and even a cell phone contract.
In some cases, creditors may sue you for damages if you don’t pay your credit card debt. Usually this only happens if you ignore repeated phone calls and letters. Litigation is expensive, and card issuers usually only file lawsuits against cardholders as a last resort. If they prevail in court, they will receive a judgment against you for the amount you owe, plus court costs and legal fees, depending on the jurisdiction. They can then use this judgment to garnish your wages, seize funds in your bank account or seize or put a lien on other assets that belong to you.
It is better to be responsive to the creditor and negotiate a settlement or a more affordable payment rather than let it go to court.
Types of Student Credit Cards
Rewards cards
Rewards cards provide incentives to cardholders to use the card. Some credit card companies offer a percentage of card activity credited back to the user in cash. Other rewards cards let users earn points or miles that can be redeemed for goods, services or airline fares.
Cash back programs
The simplest type of rewards program is a cash back program. A cash back card credits a percentage of your total transactions back to your account. Some cards offer enhanced cash back rewards programs in certain spending categories, such as restaurants or entertainment. The Bank of America Cash Rewards Credit Card for Students, for example, provides 3 percent cash back on gas purchases and 2 percent at grocery stores and wholesale clubs on up to $2,500 in quarterly purchases at these places. All other purchases earn 1 percent cash back.
Other cards provide higher bonus cash back incentives in categories that rotate every few months. For example, the Chase Freedom card has 5 percent bonus cash back on spending categories that rotate every quarter and 1 percent cash back on all other purchases. One thing to keep in mind for cards with rotating bonus categories is that you have to enroll in the program each quarter to get the 5 percent bonus cash back.
Points and mileage programs
Other types of rewards programs let you accumulate points or miles that you can redeem for discounted travel tickets or hotel rooms, or for prepaid cards that you can use at participating merchants.
Some cards will offer sign-up bonuses to get you to open an account and to get you in the habit of using your card to earn rewards. While sign-up bonuses are less commonly offered for student credit cards, the Discover it Student Cash Back will automatically match all of the first year’s cash back earnings for new cardholders.
Secured credit cards
If you can’t qualify for a traditional credit card, you may want to consider a secured credit card. A secured card is different than a traditional credit card, also known as an unsecured card, because it requires a cash deposit as collateral to hold the account. You send a cash deposit to the bank when you open the credit card account and the bank then extends you a line of credit, which is usually equal to your deposit.
By paying your card on time for a number of months, you may be able to improve your credit score, qualify for a higher credit limit and qualify for an unsecured version of the card if one is available. If your account graduates to unsecured status, the bank will return your deposit.
For example, Discover, who issues the Discover it® Secured, commonly returns deposits and upgrades prompt payers. In the case of Discover, responsible cardholders may be promoted to unsecured status after eight months of on-time payments and responsible credit use.
While secured cards have high interest rates, if you pay off your balance every month and don’t take cash advances, the APR doesn’t matter. Furthermore, it’s more difficult to fall into debt with a secured card: Limits are generally low, and often equal to the amount you have on deposit with the bank. Meanwhile, you can still accumulate travel, points or cash back rewards if your secured card offers them.
The low limits can be a problem, though, when it comes to your credit utilization rate: If you have only one line of credit - a card with a $200 limit, and you spend $100, your credit utilization ratio is 50 percent, which can lower your FICO score.
There is no difference between secured and unsecured credit cards when it comes to building your FICO score, says Gerri Detweiler, author of “The Ultimate Credit Handbook” and "Finance Your Own Business.” “If you need to build or rebuild your credit, secured cards are absolutely a legitimate credit building strategy,” she says.
Secured credit cards vs. prepaid debit cards
Both prepaid debit cards and secured credit cards share the advantages of convenience and safety, and it’s impossible to overspend with a prepaid debit card. However, as a credit-building tool, prepaid debit cards don’t work. Unlike credit card issuers, including issuers of secured cards, prepaid debit card issuers don’t report credit usage to consumer credit bureaus.
Credit Card Best Practices
Use this checklist to help you use your credit card responsibly and remain debt-free.
Build good financial habits.
- Use your card only for essential purchases that you can pay for each month.
- Put part of any income you earn into a savings account so you don't have to rely on credit cards to cover unexpected costs.
- Strive to pay off your balance every month.
- Stick to a budget. Automate as much as you can with free online tools or mobile apps
- Get organized. Set up calendar reminders and internet banking systems to ensure all your bills get paid on time each month.
- Avoid cash advances.
- Check your statement every month. Report suspicious or fraudulent transactions as soon as you discover them.
Build your credit.
- You can start building your credit history before you get a credit card by paying phone bills, rent and utilities on time every month.
- Don’t use more than 30 percent of your available credit; 7 to 10 percent is ideal.
- Be careful about closing old accounts; they can boost your score as long as you keep them current.
- Get a free credit report by visiting AnnualCreditReport.com. Each of the three credit bureaus must by law provide you with one free copy of your credit report each year. Pull one every four months from one the three bureaus, and review it for accuracy.
- Don’t cosign for other people.
- Don’t ignore creditors. Pick up the phone and work with them if you get in trouble, or find a local credit counselor.
- Know the signs of credit repair scams. If you fall behind on payments and do damage to your credit, beware of any services that advertise quick fixes for an upfront fee, or who tell you that they can remove accurate information from your credit report.
Teaching Teenagers About Money and Credit
A 2016 survey from the National Financial Educators Council asked 2,409 Americans what high school course would have benefited them the most, and more than half of them chose a course on money management.
As children enter their teen years, the stakes get higher as decisions they make regarding how to spend any income they make or which college to attend affect their career path and credit history. Below are a number of free educational resources designed to help parents and teachers educate children on financial literacy and credit in particular.
Teaching teens financial literacy
- Teachers and home-schoolers looking to teach financial literacy can find entire units at InCharge.org, which has several lesson plans that include worksheets, slides and Powerpoint presentations on various aspects of financial literacy.
- The Boys & Girls Clubs of America sponsor a general financial literacy plan for teens called Money Matters: Make it Count. The National Credit Union Administration has educational plans for elementary students, teens, young adults and parents and teachers at www.mycreditunion.gov.
- American Consumer Credit Counselors also has a series of financial education lessons called Dimes to Riches, for middle school and high school students.
- The Consumer Financial Protection Bureau also provides a number of tools for parents here.
Budgeting
Mint.com has developed a teachers’ module on budgeting that gives children a practical exercise in creating and managing a budget. Mint.com has also created a number of interactive tools for teens, including a budgeting tool for high schoolers and college students.
Compound interest
Compound interest and the value of money over time is one of the central concepts of personal finance. Many young adults don’t fully grasp the power of compounding interest until they are on the wrong side of it. Mint.com has two useful tools to help kids learn about compound interest: a compound interest calculator and a Rule of 72s calculator.
Banking
Most banks offer special checking accounts for teens and will open accounts for children roughly age 13 and older. These teen checking account products are subject to monitoring and additional controls by parents and guardians. For example, the bank will issue a teenager a debit card, but parents can set limits on withdrawals and expenditures, and monitor where their children spend money on their debit cards.
The American Bankers Association has a list of participating banks in your area.
Fraud protection
Kids should learn the basics of safeguarding their personal information, as well as tips and techniques to ensure they aren’t snagged by online phishing scams and similar criminal operations. The High School Financial Planning Program offers a module designed to help teenagers learn to protect themselves from fraud.
Credit and credit scores
To help children understand how expensive credit card use can be over time, show them a credit card interest calculator.
For general education about credit scores, including their importance and what goes into a credit report, see MyFico.com. You can also get a free copy of your own credit report to review with your teenager at AnnualCreditReport.com.
Educators may be interested in the Public Broadcasting Service and Frontline production “Secret History of the Credit Card,” which comes with a series of learning activities centered on the documentary. Additionally, InCharge Institute of America devotes a module specifically to credit cards. CompareCards.com also has an in-depth lesson plan available for high school students.
Additional resources
American Consumer Credit Counseling has produced a Financial Workbook for Pre-college and Current College Students, which you can give to your high school senior or student to walk them through common financial decision making processes. Topics include choosing a bank, credit card management, earning money from jobs, scholarships and various ways college students can save money.
Editorial opinions are those of U.S. News and have not been previously reviewed, approved or endorsed by any other entities, such as banks, credit card issuers or travel companies.