Tune in to this episode of PennyWise for practical advice and essential tips to help your college-bound child navigate the world of credit cards responsibly and build a strong financial foundation for their future.

Hosted by Nat Cardona and speaking with Wallethub expert Cassandra Happe, this episode is designed to help parents make informed decisions about their child's financial independence and responsibility.

They emphasize the importance of having a credit card for emergencies, especially when your child is far from home. A credit card can provide a safety net in unexpected situations, ensuring your child has access to funds when needed.

They also cover the significance of building credit history early. By becoming an authorized user on a parent's account, students can start establishing their credit without being legally liable for the charges. This sets a foundation for good financial habits and a strong credit score, which will benefit them in their adult life.

Nat and Cassandra also discuss the benefits of secured credit cards and student credit cards. These options provide a controlled environment for young adults to learn about credit management. With secured cards requiring a security deposit, students gain a sense of accountability and the importance of spending within their means.

A key point is the recommendation to limit the number of credit cards a student holds. Starting with just one card helps prevent overspending and simplifies financial management. Cassandra warns about the negative impact of multiple credit card applications in a short period, which can harm a young person's credit score. 

Teaching students about on-time payments and keeping credit utilization below 30% are essential lessons for building good credit. While rewards cards can be tempting, the focus should be on responsible spending and timely payments rather than accumulating points.

Cassandra also advises against using credit cards for friends or family members, stressing the risk involved if they fail to repay. This lesson is crucial for young adults who may still be financially dependent and working part-time jobs.

Finally, the episode addresses the pitfalls of cash advances on credit cards. While they can be a quick solution in dire situations, the high fees and interest rates make them a costly option. Cassandra recommends having a debit or ATM card linked to a checking or savings account for cash needs, as these typically incur lower fees and no interest charges.