Coka Collins has received plenty of advice as she prepares for her freshman year of college at Louisiana Tech University this fall. But there's one warning particularly stamped in the 18-year-old Mansfield, La., native's memory: "No credit cards!" she said.
"They can be tricky because you can spend on it, but you have to pay it back." 
Collins' statement falls in line with one of the ABCs of good finances, according to the Better Business Bureau ( BBB ) and national nonprofit consumer credit counseling agency ClearPoint Financial Solutions (below).
Both agencies have joined together to encourage parents to review with their teens the "ABCDs" before they head to college.
"Parents typically take the time to discuss the risks of illegal drug use and other personal safety issues. We hope they will also remember to advise their college-bound son or daughter how to manage finances responsibly," said Andy Fisher, chief executive officer of the Better Business Bureau of Central Louisiana. "That way, when they graduate in a few years, they'll have a head start on the road to financial stability."
That's what Collins' guardian Tina Cotton had in mind when she warned her about credit card spending and other points.
"If she learns not to be wasteful at an early age, it can help her throughout life and keep her from getting into a financial bind,"
she said.
Throughout Phillip Homza's teen years, his parents Wayne and Lynn Homza of Shreveport, La., groomed him on the importance of managing money properly by helping to start a checking account at age 14, followed by a savings account shortly after.
"I just think it's important. They're lifelong lessons because quite soon, we hope, he will be totally responsible for his own finances,"
Lynn Homza said.
Such lessons fall in line with account awareness, or letter "A" of the ABCDs (below).
The BBB and ClearPoint Financial Solutions' ABCDs include:
A is for account awareness
• The typical teen needs some direction when selecting a bank, opening a checking account and learning how to maintain it.
• Tell your teen to keep his account information (paper statements, passwords, ATM cards) in a safe, secure location.
• Emphasize the importance of regularly monitoring his/her financial accounts, including checking, saving, credit accounts. |
B is for budgeting basics
• Following an organized budget will help your teen stay on track with spending and financial goals.
• Help your student project what he will need during the semester for books, rent, food, entertainment and other expenses.
• Discuss what happens if there is a gap between expenses for the month and available income. |
C is for credit cards
• It is not uncommon for college students to be inundated with offers for credit cards.
• Even small purchases can add up over time, particularly if students are lax about making timely payments.
• Stress that a credit card is one small part of an overall financial plan. |
D is for dangers of debt
• Your teen needs to understand how important it is to pay off any debt in a timely and responsible fashion.
• Assure your college student that it is OK to ask for help from you, from a professional credit counselor or from sources of financial assistance the college may offer.
• Do not succumb to a "too good to be true" solution. |
Related Articles: Some Students Add Debt With Credit Cards, Report Says | Study Tracks Student Use of Credit Cards | Easy money via credit cards snares unsuspecting college students
