Hey future college students! Let's talk about credit cards - those plastic rectangles that can be both awesome and dangerous. Here's what you need to know:
What's a Credit Card?
It's like borrowing money from a bank. You can buy stuff now and pay later, but you have to pay it back!
The Good and Bad
Good:
Builds credit score (your financial report card)
Handy for emergencies
Some give rewards
Bad:
Easy to overspend
Can hurt your credit if you don't pay on time
Interest makes things more expensive
Interest: The Hidden Cost
If you don't pay your full bill each month, you owe extra money called interest. Example: A $100 purchase could end up costing $120 or more!
Golden Rules
Pay on time, every time
Try to pay in full each month
Don't max out your card
Only buy what you can afford
Understand your card's terms
Your First Card
When you're 18, consider:
Student credit card
Becoming an authorized user on your parents' card
Remember: A credit card isn't free money - it's a tool. Use it wisely!
Want more money tips? Check out fiscally-fit.org!
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