Money

Prep School Admissions
1

<p>I got daughter two credit cards. One is a prepaid card from USAA where I can put her allowance on it. She can use it for clothes, books, ATM. Think it is easier than a checking account or cash.</p>

<p>I will probably get grief for this one, but I also got her an American Express card for emergencies. I figure that if I can trust her to go away to school, I should trust her not to use it except for my definitions of an emergency (ie, NOT it was their last pair of xxx shoes and I had to have them)</p>

<p>(copied from boarding school supplies to start new thread)</p>

2

<p>Post of Burb Parent - copied from Ultimate supply list</p>

<p>Princess'Dad -- If you haven't already, you should talk to her school about their debit card. I think most schools use this system for purchases, charges, food at the grill, allowances, etc.</p>

<p>I'll describe what they have at Blair because that is what I know. I think it is typical. Before the school year starts, I put some money into his account. This account is used for all schools charges (except tuition, private music lessons, etc.) including cash withdrawals. If I remember correctly, they are divided into 4 categories, and I can restrict the amount used per month for each category. Every month I receive a detailed accounting of how the money was spent. I can add to the account if needed. Anyway, you probably have a similar system, and may want to use it.</p>

<p>My son has the school debit card, and it is good that he can review how he spends the money down to each cherry coke. He also has another debit card that is tied to his allowance and savings. </p>

<p>If there is more discussion on this topic, it's a good idea to start a new thread because it is a little off topic, and this thread is a monster.</p>

3

<p>i have a debit card to take cash out of my savings/checking account that i use for extra money on the weekends, regular purchases, etc. i also have an american express card hooked up to my mom's account for emergencies (like if im stuck somewhere and need money for transportation) or pre approved things like if i needed a dress for a dance or something.</p>

4

<p>
[quote]
I'll describe what they have at Blair because that is what I know. I think it is typical. Before the school year starts, I put some money into his account. This account is used for all schools charges (except tuition, private music lessons, etc.) including cash withdrawals. If I remember correctly, they are divided into 4 categories, and I can restrict the amount used per month for each category. Every month I receive a detailed accounting of how the money was spent. I can add to the account if needed. Anyway, you probably have a similar system, and may want to use it.

[/quote]
</p>

<p>We had that system at my school, too. My parents did give me a credit card also - for emergencies and for stuff that they'd normally buy for me if I was at home...as long as I called and asked if I could use it to get something, it was fine, and I liked that because it was nice knowing had the money available if it was an emergency and I hadn't had time to get cash out of my account in time.</p>

5

<p>in addition to having my school debit card,
my parents are getting me my own debit card to use on whatever so that they can control how much money i spend since there is a controlled amount...</p>

6

<p>Is USAA only for military-related families? That is what a very brief review of the website seems to indicate. But it is Sunday morning, and I have not had a lot of coffee yet.</p>

<p>I think that we will set up a bank account for my niece at a bank that has branches at school and home. (Of course, that may not be possible for everyone.) Then we can easily do deposits for her so she will have cash access by ATM card. And maybe giving her a credit card for emergencies is a good idea as well.</p>

<p>Unfortunately, I don't think all schools have the school-based debit cards for books and other school charges. Some are not as advanced as others.</p>

<p>Maybe the schools will provide us some tips on this issue when they send us more materials later this summer?</p>

7

<p>As Burbparent indicated, most schools have a student account system that covers things purchased at the school bookstore and also a cash withdrawl system for allowance/spending money that parents can set limits upon ("so much per week" type of thing). The SmilePups went to 2 different schools and both had (slightly differing) systems providing those services.</p>

<p>We also provided each of the Pups with an ATM card tied to an account that we could deposit cash directly into, and a credit card with a fairly low credit limit for emergencies. The monthly statements for both of those accounts would come directly to us so we could see where the money was going.</p>

<p>I felt some measure of comfort with these multiple cash sources in place that the Pups wouldn't get stuck somewhere with no money, but also that they wouldn't get caught out spending/loaning way too much.</p>

8

<p>the rules for becoming a member of USAA seem to change. I am a member because my father served in the Air Force (just 4 years, back in the 60's).</p>

<p>My husband and kids are all members because they are related to me.</p>

<p>I think if you are related to someone that belongs to USAA, or someone in the military or has served in the military, you can join.</p>

<p>I will say -- after banking with many other banks, USAA wins the gold medal for ease of use, services, price and customer service. They have "deposit at home" for depositing your checks -- I just scan it into the computer (no fax needed, just a typical cheap scanner) and it is deposited and available immediately.</p>

9

<p>Brooklyn
HSMomStef has it correct.
But, I think others also have a prepaid credit card. The nice part is that you can also look at every place they spend money.
Amer Express also has the advantage (i think) as an emergency back up card in that they are taken by everybody - but are by those you would want in case of an emergency. Also found that they have an age limit, but if your child is "going overseas" (which mine are this summer) they ok them.</p>

10

<p>Different schools work the accounts differently. The important thing is that you and your teen understand what s/he is responsible for paying for with allowance and savings and what you will cover. Ours has a credit card only for travel emergencies and purchases we approve in advance. Books and required materials are charged to an account at school. Other spending money, such as food, comes out of the bank account via ATM or debit card.</p>

11

<p>Why only Amer express? I think you can have additional card for most credit card.</p>

12

<p>At Hotchkiss they have debit cards which are used to purchase virtually everything they can need/want on campus. It even works for the washers/dryers and vending machines. We found she spent a lot less money at BS than when she is home (a ton less). They are provided free entertainment as far as shows, concerts, dances, etc. on the weekends and many evenings, and they have food provided seven days a week in the cafeteria. Sometimes they will go in with a group on the weekend for chinese food or a pizza and need cash for that, but we really have seen that the debit card covers her expenses at school almost totally. Most parents shop with the kids once they take them in the fall for toiletries and that kind of stuff, so I think you will find they really don't need much once they get there. Trust me, my kid is a shopper but they just don't need much stuff once they are settled in.</p>

13

<p>Thanks hpflrent - this thread was really making me nervous. I'm having a hard time figuring out why my kid would need so much money - debit cards, credit cards, allowance - I'm already spending a fortune getting him to the school, once he's there I expect him to not become a financial black hole.</p>

14

<p>photo,
I use a computer program to track money and it is amazing how much they spend for movies, out with friends, a new jeans, etc. I hope that hp is correct in that since they are studying more, have "paid" entertainment and are not going to the mall as much to "hang out" that it will be cheaper.</p>

<p>However, in case of an emergency, I want them to be able to get home or whatever. I have always given my older daughter $50 bill to have "in case she needs to call a taxi to get home on a date, etc". I would rather have her able to to something than not.</p>

15

<p>We actually kept track of the money flow and I feel very confident in what I said before. There were two months she was gone that she did not spend more than five dollars those months. There are just so many things to do that cost nothing. They play volleyball and frisbee and go swimming in the school pool, go listen to a concert, go sleeding, hang out in a friend's dorm, or whatever. They are so busy there is just not time to spend money. I know some parents might find that hard to believe, but they are required to go to so many things besides classes and their required afternoon activity. They go listen to speakers who visit. That is not just an occasional thing. They could have two to four speakers in one week plus an orchestra or the opera visiting. Their classmates will be participating in singing groups and plays and they will go see those. Nothing costs anything. Most kids are also involved in clubs which have meetings to attend and of course studying takes up a lot of time. I also always made sure she had about $50.00 cash on hand. To make the point even clearer, she has spent more in three weeks being home with gas, movies, meeting friends for a meal and that kind of thing than we spent in the entire second semester. Some parents might think that it shows them how much we care by sending them money, but really they will appreciate a care package now and again or a card once a week in the mail. It is sad for a lot of kids to go to their mailbox and it is empty almost everyday. I hope I am being helpful.</p>

16

<p>PrincessDad and hpflrent - thanks for your posts, they were both very helpful. I've never given my kids much spending money so this is all new to me. I really don't think I would trust my kid with a credit card - but $50 emergency cash seems reasonable. I know one of the schools we toured told us that the mailperson puts a candy in each kid's mailbox who didn't receive mail that day. I thought that was sweet - literally and figuratively I guess :0</p>

17

<p>I thought I would share how I work the "money" issue with both my sons -- it has been very successful and we will continue.</p>

<p>Both kids have a debit card (which is a mastercard and can be used as such, or as an ATM for cash) and a savings account. These are joint accounts, with son and I. They are accessible online (all transactions, etc). I also have accounts with this bank -- so it is easy for me to transfer money (in or out). I can access the same info as my son -- so I can see where the money goes.</p>

<p>My kids carry less than $10 cash -- too easy to lose, spend, lend, etc. (at least for my kids). Money spent on the debit card is easily tracked -- so they can see when they look online how much they spent on food, movies, etc. It is a good reality check and makes it easier for them to make a budget and see the implications of their spending habits. </p>

<p>When they get money for xmas or birthday -- they can just deposit it into their account. They move money to savings when they want to -- or move it out, if necessary. </p>

<p>If they saved up money for a trip, I can transfer money from their account to mine if I buy the ticket online for them. If they need money for something special, it is easy for me to transfer funds to them -- including emergencies (money can be transferred 24/7 with immediate availability). </p>

<p>They have both used their cards overseas (Egypt, Netherlands, UK, Italy, Spain, France, Germany) both as ATMs and mastercards with no problems.</p>

<p>We do give each kid an allowance -- but it is minimal, $10/wk. If they need money for other things -- clothing, toiletries, haircut, etc -- they can ask and if we can, we will deposit money in their account. For other purchases (movies, itunes, etc) we expect them to use money they earned, gift money, or allowance.</p>

18

<p>The card from USAA that I have for D is like what you mention. If she overspends, there is no money, she cannot go into credit.</p>

<p>However, I do worry about some expense that is not thought of or if something happens and she needs to come home or stuck somewhere, etc. For that I gave her the amex card. I had long talks with wife re: it. But, bottom line was that if I trust her to go away, I should trust her otherwise. And, if she uses it without my permission, then it goes away.</p>

19

<p>Are any parents giving allowance to their child while they are at boarding school? My mom thought it was reasonable to give me 20$ a week because there being little time for a job. When Christmas comes then I can only use what I have saved from that, or previous earnings. Therefore I won't be spending all 20$ but still have the income I would at home with babysitting, a real job, allowance, ect.</p>