As millions of students head back to school, many are going with a credit or debit card in hand (some for the first time). Owning a card can be a big responsibility for young adults and unfortunately, when it comes to learning good spending habits, not all are prepared to ace the test.
According to financial counselor Dave Ramsey, more than 80 percent of graduating college seniors have credit card debt “before they even have a job.” Industry data from Sallie Mae found that only 63 percent of college students pay their credit card bill in full each month.
At the same time, young adults are a growing target for card fraud. According to the Federal Trade Commission, 43 percent of consumers ages 20-29 reported losing money to a fraud scheme, which is almost triple the percentage of older consumers.
The good news is that your members and their children don’t have to become one of these statistics. By equipping them with the knowledge and proper tools to manage their cards, credit unions can simultaneously guide members towards better spending habits while reinforcing their primary financial institution (PFI) relationship.
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