Good kick-off question to your credit card unit; we often focus too much on the negatives of credit cards vs. the ways they can be used responsibly. See how many of the five that your students can come up with.
USA Today story on the credit card habits of successful people gleaned from research from Tom Corley. Here are the five habits he found in his research:
- Simplicity: In Corley’s research, he found that only 8% of rich people used more than one card, while 77% of poor people did. “Successful people only use one or two credit cards,”
- Don’t carry debt (i.e. they pay off balances every month): “While 90% of poor people in Corley’s research carried balances, only 5% of rich people did.”
- Pay on time: “Sixty-seven percent of the poor had at least one late payment in the last year, while the rich survey respondents had none.”
- Take advantage of rewards programs: “When it comes to reward points or dollars, 81% of the rich said they had them, while only 9% of the poor did.”
- Understand the importance of credit scores: “Corley found that 77% of the rich knew their credit scores, while only 5% of the poor did.”