Have You Had "The Talk" with Your Children Yet?

"Money is hard to earn and easy to lose. Guard yours with care."
- Brian Tracy

Have you had "the talk" with your children yet?

Not the "sex" talk but the talk that is necessary for your children's future. The financial talk about credit and credit cards. Talking to your kids about their financial goals is key to avoiding financial conflicts in the future.

Credit cards, to have one or not to have one. That is often the question faced by thousands of families as their high school graduates have their first experience living away from home. The answer should be carefully thought out by parents and children, alike.

Undoubtedly, there can be many advantages to having and using credit cards. They're convenient. They certainly can be useful in an emergency such as car trouble away from home or medical emergencies. And, when payments are made in a timely manner, they also can help a young person establish a favorable credit history.

But many young adults away from home for the first time have not yet mastered the financial skills required to successfully manage credit card debt. High school seniors involved in a test to measure their understanding of money scored an average of just 41.9%. Only 21% of high school and college students between the ages of 16 and 22 have taken a personal finance course.

Yet this group of American consumers is one of the most highly sought after market targeted by credit card issuers marketing campaigns. In addition to the many "pre-approved" credit card offers received by mail, college students also may be greeted on campus with a barrage of incentives offered by companies just for applying for a card, everything from free T- shirts to duffel bags.

For many of these inexperienced youth, the misuse of credit cards can spell disaster, not only financially but also academically and psychologically.