College Students Failing Financially

There is no doubt that attending college is extremely expensive.  Between tuition, books, supplies, transportation, and all living costs it leaves students' pockets dry.  The all known phrase "starving-college-student" is not so much an exaggeration as it is a reality. 

Today, to make ends meets college students are racking up credit card balances higher than what they can actually afford to pay off.   I, of course, am no exception. 

According to the United States General Accounting Office 2001 "Report to Congressional Requesters", the average college student had one or two credit cards.  Also, the average balance of credit was $1000 to $2000. 

Personally, let's just say that I like to be above average.  I have a total of four credit cards.  Well, make that three because literally just two days ago I paid off one account I had used to buy a computer.  And even though I was tempted to use the account to buy something else, I gained the courage and closed it, forever.  For most college students that is an accomplishment to be proud of.  Now if I can only pay off the other three accounts. With a total debt of $2650, it seems impossible but I have learned my lesson the hard way and I know that it is better to pay off credit card debts than it is to add to it. 

The reason why I opened credit accounts was because as a first generation college student money is sparse, and my family does what they can but it is not much.  Without credit accounts there would be times I would have had to skip a meal, or I would not have been be able to put gas in my car to drive to school.  Unfortunately, I did not learn until it was too late that I should have only used my credit cards for such necessary purposes.  Instead, I used my credit cards to supplement my shoe addiction and other completely irrational purchases. 

I cannot help, as I am sure that other students cannot either, that I love material things.  But I should have been able to help how much material things I was purchasing and how I was paying for such things. 

I do not think that college students having credit cards the problem.  However, I do think that college students not knowing how to properly use credit is the bigger issue that needs to be taken care of.  High school students and even college students would be lucky to learn about credit from either a school institution or even their own parents. 

Just like there is Sex Ed., there should be "Credit Ed.".  A program that would educate students early on about what credit is, how to use it, what are the advantages and disadvantages, and how it can hurt them if used inappropriately.  This could possibly change the financial future of many college students. 

Fortunately, the government has taken one step to help college students and credit debt.  In February 2010 a law was passed that provides some protection for students against credit card companies.  To read more about the law and college students with credit card debt go to http://www.collegeboard.com/student/plan/college-success/9139.html. 

Sadly though, in this generation where credit is interpreted as spend, spend, and spend college students everywhere are receiving F's in the world of personal finance.