<p>Actually I am one who balances his checkbook on a regular basis - using the online information... and I view it as far from a quaint habit as the online balance simply shows what funds are available at a point in time as far as the bank knows - ignoring any outstanding checks. </p>
<p>Kids (and adults) should know the difference between an online balance - and how much they actually have left to spend. For example, glancing at my online balance right now in my son's college tuition account, I would assume I have tons of money in that account and I should go shopping for a new car. In reality, the college has not cashed his fall tuition check and the balance in that account is more like $250.</p>
<p>Your approach is quaint because you still write checks. :) And you use the online information to balance? </p>
<p>I do almost everything via on-line payments, even tuition payments, which mercifully have just finished. And my D is even more on-line than I am. </p>
<p>Yes, it may take time for some payments to clear, but the time is nothing like it was for checks a few decades ago (yes, I've been paying bills for a long time) when week long floats were common. And with electronic clearance of checks allowed now, the delta is much less. </p>
<p>But yes, I suppose you would have a problem if you looked online and saw 13,000 if you did not remember about a 13,000 check that had not cleared. I wonder how dense a kid must be to make that mistake?</p>
<p>On my online banking system, there's a list of payments that haven't been made yet along with a list that has been paid. It provides totals and dates so that you can mentally compare your balances and expected balances against your online payments.</p>
<p>I paid the tuition bill with Discover Card. I will have to pay the Discover Card bill in late October. It will be a whopper of a payment but it's the third time so I'm used to it. There's some amount of cash back too.</p>
<p>I still write checks when the amount is substantial and I know that the receiver of the check is slow to cash (e.g. my son's college is now at 3 weeks and counting). I'll take the interest :)</p>
<p>IRS and State Treasury are others who are slow to cash... </p>
<p>I still have a few other monthly bills where they don't take online payment and have to write checks. Church, water bill, and garbage are three that pop to mind.</p>
<p>Heck, I'll release - kids don't have to learn to balance a checkbook - but then they do need to learn how to read their on line statement!!! </p>
<p>Given that you teach an adult finance class I don't think we are arguing over IF the class should be taught - just what is to BE taught.</p>
<p>Unfortunately, many of the student loans do not have conditions on them, ie. payment directly to the school for tuition or fees. etc.</p>
<p>When I was a travel agent in Oklahoma for many years, I was appalled at the amount of students that would come into my office right after receiving their student loans to book their vacations to Hawaii, Mexico.....wherever, and it was not for a "study abroad" program!!!</p>
<p>It is very easy to say yes to the maximum loan amount offered to students whether they "need" it or not!</p>
<p>I just keep telling my 3 boys as they are in different stages of growing up......"it is all about choices"!!!</p>
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<p>thumper1, per your question in #14, I did not pay much attention but I would like to guess it was for 4 years. </p>
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<p>18K may not be a lot for most of the CCers, but it would be significant for those lower income families.>></p>
<p>But Dad II...the payment on that loan would be $200 per month...less than most car payments, less than daycare costs, less than rent. The student with these loans would also have a college degree, and hopefully would be able to find a job which would get them out of their "low income" status. That would be part of the point of going to college...to get a better job/career. These are student loans, not parent loans (the Staffords) and the student is responsible for repayment. </p>
<p>I have to say...I do not think the Stafford loans for four years are unreasonable. And remember too...this was the AVERAGE....meaning there were students with less loans and some with more loans.</p>
<p>I agree that $18K is a lot for kids from low income families. Also a lot for most kids going into low paying jobs at first. However, that is often what it is going to take to get an education. Grants alone are not an option available to most kids. They have to take out some loans. Many are taking out much more. It is at a point where it truly scares me how much both kids and parents are borrowing for college.</p>
<p>We felt $200/mo. was not an unreasonable monthly loan payment for a new graduate. It's also an amount that may be feasible to pay off early, if they are thrifty or earn a bonus, etc. </p>
<p>Count me in as one who still balances the checkbook (even with online banking). I also reconcile the credit card bill every month. Now <em>there's</em> a job!</p>
<p>Kids are getting Stafford proceeds in their bank accounts? S's was credited directly to his bill at the Bursar's Office. Wonder if completing the MPR makes a difference on that score.</p>
<p>Stanford costs about $50,000/yr.
Berkeley and UCLA cost $24,000 (of which $13,500 is room/board)</p>
<p>People seem to think State Us are really cheap, but that's only if a student commutes, and it's still not "cheap".</p>
<p>The only truly cheap schools are community colleges, and in a middle position in CA, the Cal State system, which is $4,500 cheaper than UCLA/Berkeley on the tuition, and another $3,000 or so cheaper on room/board -- so about $16,500. I think people think UCLA/Berkeley are $16,500, but it's just not the case.</p>
<p>Agree completely with DunninLA - who said state schools are cheap?</p>
<p>In PA, in-state tuition & room/board & fees for Penn State and UPitt are in the neighborhood of $22,000; which times four equals $88,000. If a family starts with a college fund of $50,000, that leaves a balance of $38,000. Subtract out four summers of earning (and saving) of about $2500 per summer still leaves you with loan total of $18,000.</p>
<p>At this point, I'd say that leaving any school with a loan balance of $18,000 will be on the low side.</p>
<p>For an eye-opening experience, choose a few state U's. Go to their websites & search for Common Data Set. Check out the financial aid section ... specifically, the average loan indebtedness at the end of 4 years. </p>
<p>I agree, Dad II, that students are taking out a ridiculous amount of money for school. I am also concerned that many students are unable to curtail their discretionary spending, so they borrow to finance things like cell phone plans with all the bells & whistles, nice cars, trips, etc. It's a different world than some of us grew up in. There is a sense of "need" for things that many of us do NOT consider necessary.</p>