KASFAA Oz-Sociated Press, Spring 2003
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Learning Wise Use Of Credit Cards Is Critical For Student Financial Literacy Submitted by Andy Bracciano National Student Loan Program Last fall, financial aid administrators testified before Congress as to how students of all ages need to be financially literate, especially to learn how to use credit cards wisely. Your students can find credit card advice, calculators, and other money management tools with these online resources. Bankrate.com at www.bankrate.com/brm/rate/cc_home.asp helps students learn credit card basics like how to calculate the real cost of debt, what it takes to pay off a credit card, and the true cost of paying only the minimum amount. They can check their credit and compare the best credit cards online at www.bankrate.com/brm/rate/BRM_ccSEARCH.asp. Federal Trade Commission's Consumer Protection at www.ftc.gov/bcp/menu-credit.htm gives students tips about building a better credit record, understanding credit scoring and its affect on getting a loan, and disputing false credit card charges. Mapping Your Future's Financial Fitness Tools at www.mapping-your-future.org/features/dmtensteps.htm test students' personal finance and financial fitness skills. They'll find advice about using credit cards wisely, accessing credit reports, and using interactive calculators. Use Your Credit Cards Wisely at www.mapping-your-future.org/features/dmcrwise.htm lets them shop around for the best credit card based on their budget and repayment habits. VISA's Practical Money Skills at www.practicalmoneyskills.com/english/resources/calculators/calc_creditcard.php shows students the wise use of credit and its true cost. They use a Cost of Credit calculator to see how interest increases the total cost of a purchase by estimating the interest they'll pay, how long it takes to repay, and the minimum payment. For more tips and tools for helping your students improve their financial literacy, contact Connie Kent, NSLP's Financial Management Director, at 800-735-8778, ext. 6651 or e-mail conniek@nslp.org