A question for 'U
From the Winter 1999 Parent Newsletter
By Rod Loper, University Counseling & Consulting Services.
Dr. Roper has retired, but Scott Slattery now addresses questions
from parents and guardians of University of Minnesota students. Please
address your questions to Dr. Slattery at 612-625-4568, or e-mail
slatt008@umn.edu.
Q: I just found out that my freshman son has three
different credit cards, and he has more than $750 charged on each
of them. He also has rung up a huge phone bill on his calling card.
He tells me "everyone has debts when they're in college, and I pay
the minimum balance on my cards every month. I'll pay it off when
I graduate and get a good job." How can we persuade him to take these
financial obligations more seriously?
A: The college years mark a time of rapid transition
between adolescence and adulthood, with shifting boundaries, responsibilities,
cultural assumptions, and legal expectations.
The legal age shifts around,
depending on the circumstances. The "age of majority" or "age of
consent" varies from topic to topic. For example, college students
who accept financial aid have involved their parents in sharing
their financial responsibility until they are age 24. So in your
case, your son cannot simply brush aside your concerns. He also
needs a good lesson in money management.
Credit card debts often have a way of mounting up unexpectedly.
Just one late payment can trigger a significant increase in the
annual percentage rate the card holder is charged. Late fees can
be as much as $29, more than wiping out the monthly payment. Furthermore,
reports Bankcard Holders of America, if a person has an outstanding
monthly balance of $2,500 at an interest rate of 18.4 percent, and
if he or she pays a 2 percent minimum monthly payment, it will take
more than thirty years to repay the debt and will cost more than
$6,650 in interest.
When you find your son or daughter brushing off your valid parental
concerns-whether it relates to social behavior, alcohol or drug
use, emotional problems, or finances-it is time to open a dialogue
about this very powerful and challenging time of shifting responsibilities
during the college years.
Coming up this quarter is an excellent workshop sponsored by University
Student Legal Services that addresses the issue of student debt.
"Using Credit Wisely" will be offered from 12:15 to 1:30 p.m., Wednesday,
January 27, in the Mississippi Room of Coffman Memorial Union. The
workshop is free, and lunch will be provided to participants.
The workshop has three components:
- Use of credit cards and how to establish a credit rating
- Legal impact of debt and obligations
- Psychological and stress factors related to debt
Speakers will include Suzy Wheeler, the education coordinator for
Consumer Credit Counseling Service; attorneys from University Student
Legal Services; and a counselor from University Counseling & Consulting
Services. No registration is required. For further information
about the workshop, call 612-624-1001. |
