Carson students learn to “survive” credit card use

Carson College of Business finance students in Adjunct Professor Heather Howard's personal finance class stepped into a mock shopping mall this spring as part of "Surviving the Swipe," an interactive financial literacy activity that challenged them to think critically about credit card spending and long-term financial decision making.

Throughout the class period, students selected mock credit limits ranging from $1,000 to $10,000 before visiting themed display stations representing common expenses like housing, groceries, entertainment, travel, dining out, and online shopping. Using toy credit card readers and fake credit cards, students tracked purchases on worksheets as they moved between stations deciding how much of their available credit to spend.

After the shopping portion of the simulation ended, students calculated how long it would take to pay off their balances using minimum monthly payments and discussed the long-term financial consequences of their choices.

Karen Richel, an accredited financial counselor and University of Idaho extension educator in financial literacy who created and leads the activity, said the simulation is designed to help students better understand the realities of borrowing money before they encounter major financial difficulties later in life.

"In this simulation, students learn how to use credit responsibly, so that debt doesn't affect them for the rest of their lives," she said. ""Lots of people become completely destitute because they purchase things on credit they can't afford. This program gives an overview of how that happens and the consequences."

During the exercise, students discussed the difference between wants and needs, reflected on impulse spending habits, and examined how recurring expenses can quietly accumulate when placed on credit cards month after month. Several students also compared how different spending felt when using a credit card versus paying with cash.

Richel emphasized that credit cards themselves are not inherently harmful when used intentionally and responsibly while considering the additional cost incurred by compounding interest.

"It's important to use credit cards as a tool," she said. "Credit cards allow you to actually shift time so you get something now, but your future self is the one that pays for it. The money you spend on your credit card every month is basically future income."

The activity also encouraged students to think about opportunity costs by comparing long-term debt repayment with the potential benefits of saving or investing money instead.

By combining hands-on participation with real-world financial scenarios, the simulation aimed to make abstract concepts like interest, debt accumulation, and credit utilization feel more immediate and personal for students preparing to manage finances independently after college.

Howard says activities like "Surviving the Swipe" help students connect classroom concepts to everyday decisions they may soon face on their own. She says students left the activity knowing specifics about the dangers of overspending, and established a benchmark goal of spending at most, 30% of their credit limit at any time.

"Class discussion also centered on how investing early could have the opposite impact of credit card debt," Howard said. "Overall, the simulation turned abstract concepts into something personal and tangible."