Ch 6 Case - sign up for credit cards. Also, these credit...

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Chapter 6: Financial Planning Case 1. Why should parents of college students be aware? Credit Card companies are attracted to influence college students to purchase credit cards. Parents should be aware that college students are very high potential customers for these credit card companies. The plan of credit card companies is to give college students gifts such as free t- shirts or free airline tickets. The problem lies when a college student 18 or older, do not need their parent to co-sign or give permission. Parents should let their college children know the positive and negative side of credit cards before they enter college to try to prevent this from happening. 2. How do credit and marketers entice college students? Credit card companies have targeted young college kids by giving them free gifts to get them to
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Unformatted text preview: sign up for credit cards. Also, these credit card companies will offer low APR’s to lure student into purchasing a credit card. Credit card companies encourage college students to build a credit history at a young age, so they go and sign up for a credit card. 3. Where do students turn for help when they get into debt trouble? Many students have a high amount of debt in college. They tend to spend a lot of money to satisfy their needs. However, they are unaware that they are in debt after they receive a credit card statement saying they are in debt. They do not have full-time jobs that can pay these bills off, so than these college student turn to their parents hoping they can help pay their debts off....
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This note was uploaded on 04/14/2010 for the course ACCT Act695 taught by Professor Smith during the Spring '10 term at York University.

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