As your new graduate prepares to step into the next chapter of life – whether that’s more education or starting a career – one of the best things you can do is help them understand how to use credit cards, debit cards and prepaid cards wisely.
Credit cards build credit history and earn rewards but come with risks. If your graduate doesn’t pay the full balance monthly, interest adds up fast. Teach them to pay off balances monthly and on time. Debit cards draw directly from their bank account, naturally limiting overspending. However, they can trigger overdraft fees and don’t help build credit. Prepaid cards let them load money first and spend only what’s available. There’s no debt risk, but these cards typically don’t build credit and may come with fees.
Each card serves a different purpose. Help your graduate understand the difference and develop good financial habits now. It’s an investment in their financial confidence for decades to come.
Jacob Anderson / Financial Advisor / 28200 HWY 189 Suite 03-160 / Lake Arrowhead, CA 92352 PH:(909) 337-8188. This content was provided by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC.
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