[originaltext] Blaming credit cards for young adults’ money abuse is popular

Blaming credit cards for young adults’ money abuse is popular these days. High school and college students are putting way too many college expenses and other charges on their cards, the thinking goes. But as credit-card issuers and Congress race to crack down on over-borrowing, do we risk barring the door so tightly that teens miss out on opportunities to learn financial responsibility? (29)To be sure, 70% of all the students surveyed, which included both teens with and without cards, showed bad financial judgment at times, failing to pay bills on time, maxing out credit cards or taking payday loans. But the credit-card holders were no more or less likely to commit these errors than students who lacked plastic. Instead, (30) the significant factor was whether students had good communication about money with their parents; those who did, also had more control over their finances. Thus the current Congressional crackdown on teen credit-card use may amount to barring the wrong door. A new federal law that takes effect next year tightens rules governing credit-card issuance for people under 21. (31)Banks and colleges are on the same path, sharply reducing teen access to credit without adult co-signors. The rules will hamper young adults who are ready to take more personal responsibility for their financial decisions, one female researcher Elina Fuhrman says. And she has persuaded her 19-year-old daughter to get a credit card before the new federal legislation takes effect. (32)Managing the card will not only enable her to earn a good credit record, but give her room to make her own mistakes when the consequences and dollar amounts are low, she says.
29. What can we infer from the survey about most students?
30. What will influence the students’ control of finance?
31. What’s the attitude of banks and universities towards teen credit-card use?
32. Why does Elina let her daughter get a credit card?