So, your son/daughter is heading off to college? Just think of all the new experiences they will encounter: optional attendance classes, meeting new people, staying up all night to study, and finding out pizza is a great breakfast food. Before your student heads out the door, make sure to sit down and talk about the dangers of credit cards. When students arrive on campus this spring, credit card companies will be bombarding them with credit card solicitations with tricky gimmicks, including low introductory rates and frequent flier miles, tee shirts and "cash back" offers. Other students may be sporting a credit card from Mom and Dad. Although it is important for students to have means in times of emergency, it is just as important to tell your new student when and how to use credit. Remember, if your student gets in debt trouble, you are going to be the first one called. Know the facts, and educate yourself so you can educate them.

• You only need one credit card. Having more than one credit card can only lead to trouble. It is also more time efficient to keep up with one bill and one balance.
  
• Make sure your son or daughter’s credit limit remains within their ability to pay. Many credit cards that are offered to your young adult will not check up on whether your child has the income to pay. Many card companies set your child up for failure through irresponsible lending practices such as not checking their credit history or ability to repay. This often leaves the co-signer (parents) holding the bag when the child defaults. 
  
• Make sure that your card stays active. Occasionally have your son or daughter use the card and pay it off so their account stays open.
  
• Make it clear to your young adult that if they start to get into debt trouble, then the longer they wait the worse the problem becomes. Communication is essential. Make sure your child knows they can talk to you if they get into trouble. Also remember that no one is perfect. Make sure your student understands how hard it is to study with a debt collection agency calling every five minutes.
  
• Tell your new adult: "This card is only to be used by you and no one else, not even your best friend. Not all friendships last forever."
  
• One way to make them more responsible is to have them write down every time they use the card so they have an idea of what the bill will be. This will also make them more conscious of how precious money is and, how to properly manage their own money.
  
• Talk to your child about his or her credit history and how it works.
  
• One of the most important points to make to your son or daughter is that the use of a credit card is a binding, legal contract. If you use a card, then you are bound and liable to pay. "I can’t pay" is not a legal defense to a collection lawsuit. It is a binding obligation for which you, as a co-signer, can be sued for enforcement.

There also are other ways to help your student instead of credit cards. One alternative is a debit card.

Debit cards in some cases are better means for students.
The "pros" for debit cards are:

• They do not allow "over spending" when the account runs out, that’s it.
  
• There is no interest or late fee charges.
  
• Some, through on-line banking allow the student and the parent to check their balance at any time.
  
• They can be free if linked to an saving account’s at the bank (that has a minimum balance), or even the students checking account or even your checking account in certain cases.
  
• They usually are accepted anywhere major credit cards are accepted.
  
• They also allow students to take cash advances at ATM machines.

• They are not always accepted everywhere.
  
• Usually withdrawing cash on them costs a small fee.
  
• Overdrawing your account usually ends in a fee similar to a bounced check. Usually averaging between 20 and 30 dollars.
  
• They usually are not protected or insured if they are stolen, meaning that if stolen and the thief found your password, then all the money could be taken or spent from the account and you lose that money. Some debit cards work like credit cards and do not require a password for purchases. You are liable for unauthorized purchases.
  
• You do not build credit, but you can gain bad credit history if overdrafts occur often.
  Check with your bank and see what kind of debit cards they offer and what protections, options, and incentives these cards offer.

Lynn Brenner, in the January issue of Parade magazine writes the five things every college student should know before they get a credit card.

• A bad credit history makes it harder to get a loan, buy a car, even get a job.
  
• Pay off your balance every month. If you only make the minimum monthly payment on a $2000 balance, it will take 18 years to pay off-plus $2615 in interest.
  
• Pay on time. A missed payment hurts your credit rating.
  
• Never take cash advances or courtesy checks. It’s hugely expensive.
  
• Shop for a regular, secured or student credit card at www.bankrate.com. Compare: annual percentage rate on outstanding balances. Look at the full rate, not the "introductory rate" rate. Grace period, the interest-free time between a purchase and the billing date-usually 30 days. There’s no grace period on cash advances. Annual fees, late fees, and other costs.