The way to "not bail them out", OP, is to not give them access to a credit card that they can use when they run out of money.

How is this not obvious?

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My daughter is a typical UMC sorority girl without parents willing to fully fund the lifestyle, and she got a PT job on campus to cover it.

Good for her. I"ve heard some turn to being sugar babies, so glad she's doing it the right way.

Throwing away her education time for a low paying job is not the right way. Working at a higher paying lower hours job is smarter.

Lol. The ends doesn't justify the means.

If you co-signed for the credit card (or assumed any responsibility for paying it), then, yes, late payment will affect your credit score.

Cancel the credit card. If the child needs or wants one, then he can apply for one himself, with all of the credit-score consequences that come with it (both good and bad). Stop paying for frivolous and/or unnecessary expenses. Your child needs to either learn to spend less or earn/save more. A one-time bailout might have been acceptable as long as you made it clear that it was for that one time only (and, if not, you should have).

I would also suggest a gift of a basic book about personal finance, with some discussion of credit cards, credit scores, interest rates, and the like. Be sure to let your child know that you are available to answer questions about personal finance issues in a non-judgmental way.

The most loving thing that you can do right now is to teach your child these lessons now, while the consequences of failure are small. Once out of college, it will be much harder to get credit of any type without a good credit score and history.

Teach your kid to budget. It’s not second nature to some kids so you have to literally break it down. Explain interest and late fees and credit rating. They are already getting a great deal with all that you cover. Break it down and give monthly allowances. And for the love of God take away the credit card! Debit only until they have better self-control.

Anonymous wrote:

Anonymous wrote:Cut off the credit card.

This, and give them a monthly allowance.

The OP wrote they already pay for everything except entertainment. The kid needs a job and no access to a CC to pay for their own entertainment. My kid has a job and pays for a lot more than entertainment. He knows he will be in big trouble if he uses the CC without asking me first.

Take away the credit card. They are for people who can pay them off and it sounds like your kid isn't one of them.

I did this. It worked. Kid ran out of money half way through their second year (for frivolous stuff). They saved a ton the next summer and even got a part time job third year (and miraculously, got better grades when they didn’t have a crap ton of free time to piss away).

Anonymous wrote:This is a very important skill. I would cut the credit card up and have a debit card instead. Turn off overdraft too.

+1.

Anonymous wrote:Cut off the credit card.

This, and give them a monthly allowance.

Anonymous wrote:I mean. I don’t know why the posters are saying the child “can’t handle credit.” They DID handle credit. They made a bet that the parents would come through, and it worked out with no apparent consequences.

Whatever you do OP, give this child real parameters that you will stick to and real consequences. I think extending them credit that you have bailed out in the past would be unkind, frankly, even if you’ve warned them.

Chances are good your kid will open their own credit card and run into problems. If you’ve said you won’t help them, don’t help them. There are worse problems than a low credit score.

I would argue for giving them a semester lump sum for food and such and letting them manage it, but ymmv.

After they burn through credit they start selling your electronics and heirlooms

Anonymous wrote:

Anonymous wrote:My daughter is a typical UMC sorority girl without parents willing to fully fund the lifestyle, and she got a PT job on campus to cover it.

Good for her. I"ve heard some turn to being sugar babies, so glad she's doing it the right way.

Throwing away her education time for a low paying job is not the right way. Working at a higher paying lower hours job is smarter.

Stop drowning your child in money.

Disable the card when she gets near the limit. She has to show you a certain amount of savings from working before you turn it back on.

Anonymous wrote:My daughter is a typical UMC sorority girl without parents willing to fully fund the lifestyle, and she got a PT job on campus to cover it.

Good for her. I"ve heard some turn to being sugar babies, so glad she's doing it the right way.

My daughter is a typical UMC sorority girl without parents willing to fully fund the lifestyle, and she got a PT job on campus to cover it.