Should you co-sign your child's credit card application?

Many parents will have to decide whether they will co-sign their son or daughter's credit card application when the new credit card legislation goes into effect next year.

Some parents may see this as a good decision, others may not.  Students have become victims of unfair marketing prctices of the banks who solicit them on college campuses.  Many students applied for the credit cards without  knowing the responsiblilities in handling the accounts and not knowing how to spend money wisely.

Unfortunately, many college students graduate with credit card debt on top of their school loans or having to file for bankruptcy.  Requiring parents to co-sign a credit card application may give the parents a chance to teach their children how to monitor their expenses.  Since parents are unlikely to allow students to run up charges and damage the parent's credit as well, students may learn to control their spending.

While some alumni groups argue that students will not be able to learn how to become financially responsible, having a parent involved in their experience with their first credit card could help them.

Many adults are in financial trouble today becasue they were never taught how to live within their means.  Perhaps parents and students could learn these lessons together.