<p>It is a little early yet, but DH and I are trying to turn over more and more of our daughter's daily life to her as she prepares to go away next fall.
How does your child handle their money at college? This sounds like a dumb question, but I was raised by parents who always kept a relatively large amount of cash at home. In college I had $20 (which for me at the time was a relatively lot of cash) stolen, and after that kept very little money in my purse/wallet. I paid for everything with a check - including some 50 cent checks :).
Because of the fees, I hardly ever write checks now, I either use the credit card that we pay off each month, and recently I've begun carrying cash, though nothing like what my Mom still does, maybe $100.
How did you advise your child to handle their money - cash a check periodically, use a debit card, only buy things on campus as it comes out of the campus account?</p>
<p>My son has a credit card and a debit card. It seems to work, he does not go to the bank often. The credit card is a joint card with his dad and we get airlines miles off of it. It also lets his dad monitor how much he is spending.</p>
<p>He also has a checking and a saving account but does not need to go to the bank except when depositing his check from his campus job.</p>
<p>I would say it really depends on the child and how much monetary freedom they've had up to that point. When mine are away at school, we deposit enough money for one semester in an account that has both a check book, and a debit card. They are responsible for making sure there is enough for rent, food, books, and tuition (which is luckily the first bill due every semester) . They use the check book for rent and tuition, and the debit card for books and food. </p>
<p>Just as a back up, this account can be viewed online so we are free to check it once-in-a-while to make sure things are going okay. So far (three kids with 10 yrs of school between them) things have gone great.</p>
<p>They also have their own personal account from which they can have spending money. We don't monitor this one and they are free to do with it as they please. They all have a credit card which they use for online-purchases. The bill comes here because they move around every year, but they are responsible for the payment. None have ever not paid the entire bill every month, and none of them have yet run out of money.</p>
<p>My S's been handling money of his own for a long time now. We transfer a small amount into his checking account each week and he uses the ATM when he needs cash. We've paid everything at his school including a full meal plan, so he doesn't use much. BTW, he also has a credit card on the account which we keep.</p>
<p>We were talking about it just this weekend. We've gotten into the habit of using checks and credit cards (paid off each month) and are just starting to substitute our debit card for the checks because of check fees. We'll probably bring our S up to speed on how we manage those things so they don't get out of control and expect him to start doing more on his own, particularly with the credit card so he can build up a credit rating for later in life.</p>
<p>We've been raising our boys from an early age giving them cash which we supervise completely at first but less and less as they get older. The only bank accounts they have are for the surplus that tends to build up from dealing with their grandparents. I like what boysmom describes about the credit card for online purchases. I can see how that could be used to teach them to use it responsibly. I remember far too vividly how many folks went crazy when they got their first credit cards right after they graduated.</p>
<p>Same as achat for my son. We set up a checking account with a debit and credit card. It has online access, with bill paying ability. Made sure there was a branch by me and by him. It can viewed at any time by either of us, and we can deposit or withdraw as needed by either of us. He lets me know if he needs any and I can transfer online or physically deposit to my branch. It becomes instantly available to him. He has a book of checks for misc., team pics, sweats... Everything else is debit and credit card.</p>
<p>He is on the meal plan so all his food is taking care off. Laundry is free, so he only needs money to go out and he has an on-campus job which is automatically deposited to his checking account. Same with residual scholarship funds, all automatically deposited to his account. All bookstore charges are billed back to his account at school so his left-over scholarship money pays for those and any health services/activity/lab fees as well.</p>
<p>We use the credit card for airline tickets and anything else school related but it all comes out of the same account. He carries little to no cash. And has only written 2 checks. He has a fridge in his room and the suite has a microwave, so if they want extras they always have enough on their meal plan to stock up from the market on campus for late night munchies. But their caf/eatery is open from 5:30am to 11:30pm, mostly cooked to order including pizza, burgers, chinese, italian, steak and fish so I think they have only gone out once or twice.</p>
<p>It really has worked for him. Hope this helps,</p>
<p>Kat</p>
<p>This is a timely topic (not early at all) because it's something that needs to be worked out with the kid. I think that it's great to beging to make the transition even before college. We've begun the conversation, but have not really thought it through yet. He knows that we will pay all of the "prepaids:" tuition, room, board, fees, travel, but that he is own his own to cover ALL incidentals (outside meals, dates, etc). He's been building up a cash reserve to cover this.</p>
<p>But we have not yet worked out the details for him to do that (cash card, etc). We'll start working on that now.</p>
<p>My daughter has always been pretty good at handling her money, it was mine that she had the problem with. </p>
<p>When she got to Hanover, she opened an account through Fleet (bank of america) which is checking (no fees) and has a debit/visa check card that she uses to deposit money from job, do online purchases, and to purchase all of her incidental stuff in town and the weekly dinner with friends . In addition she has a linked account at my bank where I can deposit money (for ticket home) in the event of an emergency. </p>
<p>We discuss the big ticket items in advance -when she wanted $300 to take skiing for gym (cost covered season lift ticket, transportation and equipment). In addition, I also try to let her take on some of the ownership of saving money for things she wants (she had to contribute $100 toward the cost of skiiing) because I don't want to be the bank of mom and she shouldn't think that there is an endless supply of money. I noticed that she really thinks over her "need" for something when she is an active participant in the puchasing of it. </p>
<p>I deposited $250 on her Dash account in the fall ,she has since told me it was too much money because she only uses Dash to do her laundry, purchased a new pair of earphones for her Ipod, and to purchase an occasional ticket-$5 for events at the Hopkins center (that she ends of paying out of her pocket). </p>
<p>I depostited $1,000 in her BB-one account(which is like a debit account that she can use at all of hte local stores of campus) in the fall which was more than enough money to purchase her books for the fall and winter term (she says that she even has enough money for spring term). </p>
<p>I have found that she does not spend a lot of money on campus(and rarely even carries money) because of the number of places that they can purchase food using ther meal plan (even had $250 left over at the end of the fall term which you use or lose and daughter ended up just purchasing food for friends and strangers during finals because she did not want to feel as if she was wasting money).</p>
<p>I asked her if she wanted a credit card, she declined saying that she really did not need one, but she will get on next year when she studies abroad.</p>
<p>One of her weaknesses is that she loves to shop, I have found that she will save her money, wait until the things go on sale, use coupons, have things shipped to school (no sales tax) and take advantage of free shipping (she recently purchased a coat from the Gap for $30).</p>
<p>I used to get antsy because I always thought that she needed somethng or did not have enough money, but I have found that she is doing a great job of managing her money because she has not asked for any additional money since she has been away at school and she says what she has is plenty.</p>
<p>We pay tuition, room and board via our credit card monthly. And then pay off monthly. This year's books were paid from money daughter got from a scholarship. All of her other expenses are on her and come out of her checking account which she accesses through atm's or getting cash back at stores. We do not monitor this at all. She usually drives home with friends but if she needs a flight, we'll pay for it.</p>
<p>She has an on-campus job and that money is directly deposited into her account. </p>
<p>I agree that this is an individual family choice, how responsible the student is and even the college location. If she went to a college in a city where activities were more expensive, we might have a different set-up. What we have though is a frugal student at a rural college who is very responsible.</p>
<p>I guess we must be the "Scrooges" of the world. Our D who is at Carnegie Mellon earned all of her spending money and money for books this past summer driving a truck for a florist. She now has a debit card attached to her savings account...she got the account in Pittsburgh. We do not fund it.....she has to do that herself! She has been able to locate used textbooks for her classes on line and has become quite resourceful in even buying used clothing at local thrift shops. Of course, we do provide groceries when we visit and bought her all the necessities...like a new laptop computer and long evening gowns for her various and sundry "formal" events that she has been invited to. All of her food is done through CMU although she has an apt. off campus with a kitchen. I doubt she uses it except for the occasional "smoothie" and the occasional ramen noodle pick me up. This summer she is interested in an internship....which prolly will not pay much money..but that is her choice. At $41,000/year and NO financial aid, we can barely afford to pay the tuition, much less room and board. So there you have it....</p>
<p>My son had a checking account, ATM and and credit card at college. He needed the checking account especially once he moved off campus. At the beginning of the school year, he deposited his summer earnings into the bank account, and we matched those dollar for dollar. This was to cover his incidental costs, travel, and books and supplies. (We paid tuition, room, and board, and travel costs to and from home. Later, we also paid his cell phone, which he didn't have til senior year.) The 50-50 sharing helped to make him responsible.</p>
<p>My daughter's situation was different because the main local bank in Providence was crappy at extracting fees of one kind or another. She could charge for books and supplies at the "RISD Store" and we got a bill for that. Art supplies are expensive! In the meantime, we set up a separate account for her at our own credit union, including ATM and credit card and checking. This made it very easy to transfer funds to her accounts (and to check the balances--since we were also joint tenants on that account). The only hassle was ATM charges, but those added up to a lot less than the penalties that would come from using a bank in Providence that would hit her with a $20 fee every time she went a few dollars under the $200 minimum balance requirement.</p>
<p>Tell them what's expected and allowed, but IMO, all kid's away from home need a credit card for emergencies, and I've taught mine to alway carry $20 and some change.</p>
<p>Kirmum,</p>
<p>Tip for daughter once she gets to NYC, always have a metro card (atleast a pay as you go so you don't have to worry about expiration dates) . One swipe and you are on your way</p>
<p>Wanted to add:
son's account is not joint it is an individual account, we had to wait til he was 18 to get one otherwiseit would have been a joint one with me. We have 2 cards, one with his pic and one just plain. I keep the plain one. His credit card is linked to this account as well, so he has ben building credit under is name only. But I have online access, along with him. There is no monthly fee and there is no minimum balance. And since it is a bank with many branches he hasn't incurred any other fees so far, atm, uses as a debit or a visa and can buy online.</p>
<p>As far as money, as in who has it to pay for what, his package from the school covers his tuition, room, board and books, some travel. He has the most expensive meal plan, if he had chosen one of the less expensive ones, he would be getting more money back at the beginning of each term. His on-campus job pays for his extras.</p>
<p>I deposit $20 here and there to let him know I was thinking about him and to have a nice dinner on me. By the same token, if things are tight at home he has been known to put money into my account for something specific. (sibling has a special event or school thing and he wants to help out).</p>
<p>But I did find some great airline tickets around Christmas for his Spring Break and returning in May, NC to MN $149 RT includes tax, fees, sec, so I bought those with my credit card. I got some cash back for using my card, and he will pay for something else later.</p>
<p>Kat</p>
<p>sgiovinc1, our S is at a residential high school on a college campus where the tuition is highly subsidized. He's expected to get a job this summer for things much like you're describing whether he goes to an expensive school like CMU or not next year.</p>
<p>We're torn about jobs during the school year given the load he's carrying. It is, however, past time he had a real job and began to learn what people will expect out of him and have that lovely surprise the first time you realize some guy named FICA seems to have first claim to a big part of it.</p>
<p>Thanks this is very helpful, I will print it out.</p>
<p>Achat, what type of joint card do you use for frequent flyer miles, she's going to be racking those up, so we would like her credit card purchases, including the tickets earn her additional miles (that is if Delta doesn't go bust on us)? Our only current credit card that gets FFM is an Amex.
The problems I foresee for us are mainly, I don't think we have a local branch of any national banks, like Fleet/Bank of America, so if she needed money in an emergency, we would have to wire it perhaps. She will be in Hanover with Sybbie's daughter, so I anticipate online shopping, but not a lot of other shopping distractions.
She is frugal, especially with her money (she has saved up Christmas and birthday money for years and uses it to recycle into Christmas/birthday gifts for others, she has a tidy little nest egg), and hopes to get a job after first term. We plan for her to pay for books, clothes and everyday expenses out of her summer/school work, with us buying the big things she needs - winter coat, boots, etc. I don't think she will have any problem, especially the first year, with managing her day to day expenses.
I'm just a little worried about how to get money to her directly in an emergency. The only "credit card" she has now is a declining balance card from USAA meant for teens, We've thought about putting emergency money on that card, and keeping it in a safe place, but it seems a waste. I want her to get a real credit card for online purchases, to help build credit, and to get used to paying monthly bills.</p>
<p>This brings up another related question, where do college kids keep important documents, a spare emergency credit card, etc. I'm not immediately assuming dishonesty of roommates, I was close enough to my parents to bum gas money to get home if that had been necessary, so I didn't keep anything important at school. What about a passport?</p>
<p>Part of move in was setting up a checking & savings account at a local bank. One of our criteria was good ATM access on campus but the one we chose--and I forget the deciding factor right now--is about a three-minute walk (in non-snow). She's supposed to get a Mastercard but it hasn't been a priority for her, the debit card has been working fine. She has an AMEX card on my account for "In Case of Emergency, Break Glass" uses. She has used this, in consultation, for booking flights home, etc.
So far, so good.</p>
<p>Cangel-
I had him put copies of his SS#, birth certificate, health card, dental card, VSP card and bank paperwork in a small locked box in his room. It came with 2 keys, he has one on his key chain and I have one at home. He carries really small copies that I had laminated in his wallet. All his paperwork for school he makes a copy, keps that and mails me the originals. He keeps a phone card in his wallet, bought is at Sam's Club in his wallet as well. He calls from his room withit and I call him right back. Our long distance is the same price no matter where or for how long. One card will last all semester. He bought it before he left in the summer and once again in December. He can use it from any of the phone's he has access to and it is 2.9 cents per minute.</p>
<p>That way he doesn't have any phone charges from his dorm room. And no he doesn't have a passport yet. He might need one if he decides to go abroad, but he does have his state id. I also sent him with a list (phone numbers and addresses) of doctors, dentists and vision centers that are within our PPO network should he get really sick and not want to use the health facility on campus. i did it ahead of time since we are in NC and he is MN.</p>
<p>Kat</p>
<p>As for our son, we deposit money into a checking account so he can pay for books. The account also has a debit card which he uses for weekly cash. He rarely uses it for direct purchases.</p>
<p>We initinally deposit enough money to provide him with about $40/week spending money. That worked out fine first semester. His only big purchase first semester was an box set of 8 Coltrain cd's on Ebay for $65.</p>
<p>We did have to make an additional deposit because books topped $550 first semester!!! And he didn't even purchase one optional physics book! And he bought as many used books as possible!! Is this unusually high???</p>
<p>He has a credit card in his name with our Master Card account to be used only for emergencies and he has been extremely good with it. He has been using it on his winter term trip to Scotland however. BTW, we are picking him up at 3pm today!!! Yippee! </p>
<p>BTW, the reason we put him on our credit card is because of a tip from the Suzie Orman(?) show. Even though his name is on our card, he begins developing a credit rating. And as a side benefit, I think that it keeps other c card companies from bugging him about signing up.</p>
<p>Cangel, our son has an American Airlines Visa card. It accumulates frequent flyer miles.</p>
<p>Our daughter has her checking account at our local bank, here in PA. So she does pay atm fees, but it's a whopping $1.00 so I think she can handle that. It's also my bank so if need be, it's easy enough to put money in her account. She also discovered that if she pays for something with her debit card she can get cash back and there is no charge for that transaction. Like I said, we don't monitor her checking account so that's her business. It's her money anyway, she earned it by working during the summer and on breaks and now at school.</p>
<p>She's only working 5 hours a week at college, at the reception desk at their on campus hotel. In the first half of the year, she worked 5 hours a week (one hour a day M - F) in the faculty dining hall and then five hours at the hotel. She has a 3.7 avg, so I don't think it's impacted her studies very much. She's been able to do without a credit card so far and does order things on-line. Next year when she's a junior I think she will get one, if only to establish her credit record.</p>
<p>We have daughters passport, birth certificate and SS card here at home. I don't know why she would need them at school. She has her drivers license, AAA card and health card at school. Like any adult, she just keeps them in her wallet.</p>