‘Plastic’ a key tool for building good credit
News from Daily Illini:

As students go off to college, many receive their first credit card and are faced with the challenge of learning how to manage their own money. If anything is to be said about this, responsibility is a must, especially if it comes in the form of a little plastic card.

For a college student, receiving a credit card can be glorious. It gives you the option to spend money, without cold hard cash in your hand. Although this is true, the word ‘credit card’ means more than just a piece of plastic.

“Credit is a situation where one person or one organization loans money to somebody else,” said Kathy Sweedler, a consumer economics
educator through the University Extension Office.

Kevin Waspi, lecturer in finance, defines it more simply as “the ability to have access to other people’s money.”

Using borrowed money can be dangerous, especially for students that are just jumping into the pool of financial responsibility, but obtaining a credit card is a good learning experience.

“(A credit card) gives you an opportunity to practice using credit,” Sweedler said. “Remembering to pay your bill, making decisions about when you want to use your credit card and when you don’t want to use it, those are all things that take practice.”

Ryan Maes and Mike Ferak, seniors in Business and peer educators in the Financial Wellness Center, both agree…………… continues on Daily Illini

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Related News:

7 smart uses for your tax refund
News from MSN Money:

By Stacy Johnson 16 hours ago

This post is from Brandon Ballenger at partner site Money Talks News.

Last year, more than 64 million Americans received an average tax refund of $ 2,985, according to the IRS.

Where did they spend it? Everywhere. On everything from everyday expenses to vacations and big-ticket items like giant TVs, according to a National Retail Federation survey. About two in five said they used the windfall to pay down debt.

In the video below, Money Talks News founder and CPA Stacy Johnson shares a few smart uses for tax refunds. Check it out, and then read on for more ideas…………… continues on MSN Money

… Read the full article

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