SALT LAKE CITY — College students are drowning in credit card debt, with nearly 65% carrying balances, while parents wait too long to have essential financial conversations, according to research.
A 2021 study by College Finance revealed the average student credit card debt sits at $3,280, while the average credit card limit reaches $3,568.
Victor Wang, CEO of Stockpile, warns that universities have become breeding grounds for debt, with students facing rows of credit card tables during orientation. "I think the big thing to make parents realize is that they don't have control over that decision anymore — those kids are going to college, they are going to campus and there is going to be a row of tables trying to get them to sign up for a card maybe multiple cards, right, so the most important things for parents is to have that conversation way earlier than that," Wang said.
The timing of these financial discussions proves critical. While parents focus on dorm essentials like shower shoes and extra-long twin sheets, many overlook teaching financial wisdom before their children leave home. "I think it's really important for kids to understand limits," Wang said.
Wang recommends parents create a financial plan with their college students, establishing clear guidelines on money sources and spending priorities. This could include setting up an allowance system or structured distributions from savings accounts to help students spend wisely and avoid credit card traps.
Equally important, Wang emphasizes that parents should encourage their children to seek help during financial difficulties, turning potential debt crises into valuable lessons about smarter saving and spending habits.
