In current days, youngsters can possess a credit card easily by comparing to the previous days. The positives of this trend which are financial literacy and emergency cases absolutely prevail the negative, using a credit card wrongly.
A credit card is used in various unsuitable methods without thinking critically about the future that leads to debt. Addiction to going shoppings, buying unnecessary things, and subscription addiction are common cases within youth because of the easy access of a credit card. In Mandalay, the youth, Ei Kyaw, uses her card by subscribing to Netflix, and other services, leading small monthly fees to a huge debt. This example illustrates that greater accessibility to credit cards has more possibility of putting youth in debt.
On the other hand, financial literacy skills can be improved by using credit cards. It forces youths not only to learn how to budget, but also understand interest and repayment. A university student in Yangon wisely uses her credit card for educational purposes, such as paying for online courses, and buying a premium oxford dictionary. This evidence that credit cards are utilized in a sensible way indicates the positive effect.
Moreover, a teenager can use a credit card for emergency cases like health emergencies, since every youth needs this for their independent standing. Having a credit card in urgent situations might reduce a lot of stress for their circumstances, and can focus more on their study. Myanmar adolescents who attend Thailand university, are far away from their family, so their financial management abilities are essential for every aspect of urgent problems. This describes the well connection of a difficult situation and a credit card.
In conclusion, the advantages of financial literacy and emergency cases for using credit cards can absolutely outweigh the disadvantages of using credit cards in uncritical ways.