7. Counsel them on college credit cards

Once they’re in college, students are inundated with credit card solicitations. Nearly 55% of college freshmen accept these offers. Make sure they understand how to choose the card with the best terms by reading the fine print before accepting an offer. Here’s what they (or anyone!) should watch for when comparison shopping:

• Finance charges—Look beyond teaser rates to the small-print disclosure of what the Annual Percentage Rate (APR) will be once the introductory rate expires—usually within 90 to 180 days. Be especially careful if you’re planning to transfer a balance from an existing card. Some cards have provisions that the rate will shoot up if new purchases aren’t made during every billing cycle.
• Grace period—This is the number of days you have to pay your bill in full before interest starts to accrue on your purchases. They typically range between 20 and 25 days, but some cards have no grace period at all. That means you’re accruing interest from the date you make a purchase.
• Late charges and other fees—A card may offer what appears to be an appealing interest rate, but carries fees that can really add up. Know what you’ll be charged for sending a payment after the due date (as much as $35), taking out a cash advance, transferring balances from other credit cards or exceeding your credit limit. Also look for annual fees.
• Universal default clauses—Nearly a third of card offers now include this provision, which allows issuers to raise your interest rate without warning if you’re late with a payment to them or a different creditor. Punitive rates can exceed 29%. Either look for cards without these provisions or be aware of what you’re getting into.

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