<p>I'm another one of those students who has never overdrawn on my checking account and can't imagine myself ever doing so. I keep a register but it's just a spreadsheet on my computer, not the paper one in the checkbook, but since I have to pay rent I always have a sizable amount of money in there anyway, and I don't usually buy anything really expensive except for books at the beginning of the term, so it's not really an issue. I also always pay cash for things under about $15-$20 or so. </p>
<p>I have a credit card and I have been hit with late fees on that ($30 each time for balances that were under $30), both times in December because with finals and birthdays and Christmas and living somewhere else and whatnot my mind sort of goes out the window and I forget to even think about it. One time it was my parents' fault though...first year of college they had insisted on keeping the billing address as their house and then paying the bill themselves (probably so they can snoop and see what I buy, that seems to be a pretty popular activity among parents...), and they decided that I was going to be the one to pay it in December...except they neglected to actually tell me that, they just asked whether or not I had paid the bill yet on the day it was due.</p>
<p>Soo...seeking advice....My d should have: checking account (bank says we have to wait till she is 18yrs--this summer), over draft protection for that account, ATM card for that checking account, and a credit card. Make arrangements for electronic transfer capability from our account for checking & credit card...set all this up with bank near Ds university..Am I on track?</p>
<p>That is what I have on my list APOL except for 2 things. I cannot decide between opening accounts there or here. Many colleges will cash out of state checks once a week for students up to $100.</p>
<p>As for the credit card, she has one with her name on it tied to my acct. If college orientation is anything like it was 10 years ago every credit card and cell phone company is there offering "free" stuff to sign up for one. I do not want her to do that. I would prefer her to use mine for another year and then establish her own credit.</p>
<p>Maybe I'm completely wrong here, but I thought credit card companies would only sign people up who have full time jobs. Is this a thing of the past?</p>
<p>corranged - maybe they all required parental cosigning or had very low limits. I just know the campus was crawling with their sales reps back then.</p>
<p>The requirements to get a credit card vary from company to company. Some of the better offers will requrie you to have a decent household income or a cosigner; however, there are plenty of credit cards specifically for students. Students are a great market for many companies.</p>
<p>I would recommend never getting a credit card from the sales reps you see on the street--they always have terrible terms and rates. There are plenty of easy-to-get student cards that have favorable terms. I know that Citi has had student cards with cash back and Sovereign offers a great card with a 9.99% interest rate.</p>
<p>"That is what I have on my list APOL except for 2 things. I cannot decide between opening accounts there or here. Many colleges will cash out of state checks once a week for students up to $100."</p>
<p>I don't know of many school that would cash checks for students. I'm sure that some would. As for where to open a bank account, I would at least open an account near school. It really is a pain to coordinate your banking from out of state and rather inconvenient. If your child is likely to spend a lot of time at home in the upcoming years, I would consider opening accounts both near school and at home. That way, your child will have a banking relationship in both areas. It was not necessary for me, as I spent most of the year at school and then stayed there after graduation, but it may be worth considering.</p>
<p>"I have a credit card and I have been hit with late fees on that ($30 each time for balances that were under $30), both times in December because with finals and birthdays and Christmas and living somewhere else and whatnot my mind sort of goes out the window and I forget to even think about it."</p>
<p>You do realize that missing payments on your credit card is much worse than overdrawing your bank account, right? Damaging your credit as a student is going to hurt you farther down the line. I think that fact is something parents need to make sure their kids are aware of.</p>
<p>"Additional fees may also be added to debit card purchases...."</p>
<p>It's been talked about to death on here, but I'll point it out again--you really shouldn't be making purchases with your debit card, anyway. You risk your information being stolen. Although many debit card vendors do offer enhanced protection, debit cards are not afforded the same benefits as credit cards by law. Additionally, you put your cash at risk. Even though some banks will promise to refund all amounts wronfully taken from your account, I would much rather worry about convincing someone I do not owe something (as you would with a credit card) than worry about getting my property back (as you would with a debit card).</p>
<p>Haven't read the entire thread, but I am very interested in the topic. As a proud member of the old school, I record checks in the register and balance the account each month. I have tried to instill that philosophy into my offspring but my antiquated ways have met some resistance! </p>
<p>For those of you in the new millenium...When you check your balance online, do you just believe the bank's numbers, or do you confirm their figures with your own records? (Reminds me of a man I knew who didn't trust his new-fangled calculator, so he checked it with his favorite slide rule!!) Maybe I'm crazy, but it seems irresponsible to just belive the bank's numbers are accurate! Don't they make mistakes upon occasion?</p>
<p>momof3sons, I ebank and use a debit card/epayment almost exclusively, now writing less than 5 checks/month. It now takes me less than a minute to balance my checking account and I can do it at any time, not just when the monthly statement arrives. It IS a wonderful thing!!!</p>
<p>Our son has always banked on line and when he first opened his account I was concerned that he did not balance his checking account at month end. He reply was that he always was able to balance it on line in a matter of seconds. Now I know what he was talking about!!!</p>
<p>Rather than have my kiddos sign up for stuff at school they all looked ahead of time using Google search and some financial websites to determine which cards would be the most beneficial. USAA, Chase, Citibank, B of A, Soverign Bank, Amex Blue for Students, Discover all have cards specifically for college students. They do not require/nor want a co-signer. Limits vary from $500 to $3500. Many have very low APRs, with no annual fees and some with balance transfers of 0% with no transaction fee. Some also have 0% intro rates for 12-18 months and then convert to average rates. Others offer rewards back such as Thank You points, airline and hotel points for reward miles. </p>
<p>The kiddos then linked their bill paying option through their checking accounts to have the cc paid on-line before the due date with a reminder system so as to not incurr any late fees or worse yet, a negative trade line on their credit reports. Has come in very handy for airline ticket purchases, book store and anything else they needed to pay for. Linking son's travel back forth on AA to his Citi AA card has tripled his miles.</p>
<p>The benefit of course is a great credit history when they graduate. They make sure to pay off their balance each month or if not leave a small residual every month to maintain a decent utilization score. They can as each year passes ask for additional credit increases to increase their credit line with each respective credit grantor. A soft pull against their credit inquiries does not affect their credit score.</p>
<p>Kat</p>
<p>my son didn't realize how much I was listening when he was lecturing his sibs</p>
<p>I don't make that many purchases with the debit card itself and I only pull out $20 ever single Friday. I do go through each transaction listed and reminded myself, "oh, yeah, that was when I bought that DVD", or whatever. I have never had a problem with the bank, but I'm not naive enough to believe that it can't happen, so I keep close tabs on everything.</p>
<p>We are of the pay the credit card off each month. I rarely write checks and don't use a debit card. I do use the ATM to get cash. I use my credit card for most everything.
My student ended up with a checking, savings, and credit card from a major bank. It came with overdraft. The credit card started out with a low limit. She did mention the other day that they keep raising her credit limit. So even if it starts low it can go up. I think it is another way they get the kids. My D is paranoid about having a credit card balance and usually moves the money from checking as soon as she charges something. She has picked up her Dad's philosophy of not buying anything she can't pay for.
Her bank has a branch in our town. When she charges things that are our respondsibility I can go to the bank and make a payment on the credit card or deposit cash into her checking. She pays her credit card bill online.
Her father and I still pay our bills the old fashion way but did finally just sign up for online banking.</p>
<p>My daughter has a checking and saving account tied to ours. If we keep a minimum balance in the savings account then checking is free of charge, so we make sure there is always that amount or more in there. The saving account also acts as overdraft protection and it has happend a couple times, usually when buying books. We just took advantage of our banks offer of a student credit card with a fairly low limit. Now we will have her charge her books and we can pay the balance with an online transfer. She will build some credit and I can handle everything from my computer :)</p>
<p>DD had an overdraft last semester. Over winter break we had a refresher course on balancing the checkbook register. She got the point and now her checkbook is balanced to the penny. I also told her not to let it dip below a certain amount before she requested additional fund transfers from us.</p>
<p>I think that if you're paying for something that will pay you back later, there's no problem with spending money you don't have. The government does it, businesses do it, and smart spenders do it. I just don't need to right now.</p>
<p>APOL and cmbmom - your plans are what we did:
1. Checking account near the school*
2. Credit card (in our case he has his own card on our account; uses it little; pays us back for any charges for things we wouldn't cover) - this builds his credit score even though it is not his own separate account
3. ATM card</p>
<p>We don't have the overdraft protection; have never needed it.
*we opted for the account near his school. Although I, too, thought he could cash checks somewhere on his campus, he was appalled at the notion, wasn't sure where you could do so; would have had to do it at inconvenient times such as class hours if it were even possible, etc. At his current school, there are branches of our same bank (BofA). At his previous school, not available. In either case, very easy to transfer funds online from our account to his for allowance, etc. Slightly easier when it's the same bank, but only slightly.</p>
<p>
[quote]
I don't really see why I'd need a credit card right now."</p>
<p>To build credit.
[/quote]
</p>
<p>This really is a serious issue. We spent five years in Germany and had an American Express card there. Unfortunately AmX is not a credit card (though they now issue one) and when we came back here and tried to get a car loan we ended up having to pay 13%!!!</p>
<p>Here's what we did. Both our high school students have checking accounts at our online bank. Because they were under 18 at the time our names are also on the account. They don't have ATM cards yet, but I figure our older son will get one before he goes to college. If he wants a credit card, he can apply for it - we've talked a lot about interest rates and paying late, so I think he understands the issues there.</p>
<p>Thank you for your input. It was helpful.
Obviously it will depend on the university my D chooses to attend, and then the banks that service that area. I use electronic banking for 99% of my bills, and hope I can just electronically transfer monies to her account. I can't "wait" to sit down with her to set up her vendor list for electronic payments....I also thought by setting up the CC before she left for school, she would not feel "the need/desire" to get suckered into one offered the first week of school for freshmen. ...This is a VERY HELPFUL THREAD, imo...</p>
<p>I'm bumping this up because I have an apology to make. I thought my kids were very aware of how credit/debit cards worked but apparently I was wrong. My son has both a debit card and a credit card from his bank. At the beginning of the winter semester he paid for his books with his credit card but thought he was using his debit card. When he got a bill he didn't understand it and didn't look at it closely but saw there was a minimum balance due of about $5.00. He thought it was a fee for having the checking account and sent a check for that. </p>
<p>When he came home for Spring break I thought it might be good to bring up some of the points on this thread and he mentioned that he got a "funny" letter from his bank. He had brought the letter home and I realized it was a credit card bill showing a past due balance and a waived late fee charge. They had charged him $29 for a late fee but since it was his first one, they waived it. But he couldn't figure out what the $300 charge was for and since it was the second bill, it didn't show it. He called the 800 number and found out it was for his books. Then he set up bill pay for his checking account. But because it was just set up he couldn't register the credit card account right then. I told him to do that asap after he got back to college and explained (again!) about credit history and, charges for late payments. We talked yesterday and I reminded him about the payment, "oh, that! I think I forgot to do that!" Long story short, he registerd the credit card and posted the balance to be paid but soonest it can be done is Tuesday. I suggested he walk down to his bank and see if they would take the payment. He did that this morning, they took the payment and now he will delete the one on-line. He sounded quite pleased with himself for taking care of the problem and I think that he's learned this important lesson. The stupid thing is that he had more then enough money in his checking account to cover the books.</p>
<p>So, thank you dstark for bringing up this important subject and I apologize for saying something about my kids (well, my son anyway) being responsible adults who were financially informed. NOW he is! (I hope)</p>