A few years ago college students found themselves saddled with
mounting credit card debt, in addition to student loans. Credit
card companies eagerly sponsored campus events, signing up
students for credit cards, even though they had no source of
income besides Mom and Dad. The CARD Act, signed into law in
2009, went a long way to end those activities. Researchers at
East Carolina University say parents should do more to help
their college-bound children make sensible financial decisions.
The researchers analyzed data for 413 undergraduate students
from seven different American universities, who took part in the
College Student Financial Literacy Survey. Through an online
survey, the authors examined credit card debt and number of
credit cards owned. In particular, the researchers honed in on
students’ interactions with their parents when discussing
finances as a family, their years of work experience, financial
knowledge of credit cards, loans, insurance, and personal
finance. They also asked how comfortable