Oops! Yes, I meant “Class of 2019” but by the time I realized it, it was too late to edit my post. Darn 15 minute time limit. 
Thanks, all, for your replies about money. They have been very helpful and also reminded me to add some things on the list of items to bring/buy when we get there (laundry detergent, toiletries, school supplies, etc.)
It’s my understanding that they will still build credit as an authorized user on your credit card (eta: i.e. he has a card in his name on your account). The caveat is that your payment activity will impact his credit and visa versa. In other words, if you are late on your payments, it will impact his credit.
@AlwaysLearn and @cshell2 Thanks for bringing up the games. S20 played a lot when he was young. He didn’t play much junior or senior year, as he had so much work. But since Covid isolation he has been playing a lot every day, and has mentioned bringing it to his dorm. I hadn’t even thought about it but I don’t want him sitting in his room online. I think I won’t let him bring it at move in. We can always send it later.
We had our S18 get his own credit card as soon as he turned 18 so he can build credit. Plan was for D20 to get one too, but her birthday fell just a bit before Covid and we haven’t gone into our bank to get her one yet. Now that things are opening up more we might be able to take care of it. But for sure she’ll get one in her name before she starts school in the fall. Both kids also have credit cards that are tied to ours that they use for things like gas or if we sent them on an errand for groceries or whatever.
We’re going to do this. Don’t want to give my D our CC - she needs to be responsible for her own bills and how to manager her finances.
We pay for tuition, R/B, books, uber and will stock her up on all personal supplies. She has plenty of money from working since she was 16 and can spend that on frivolous stuff like coffee, nails, shopping, etc. I will give her $300 into her account for the semester to use for laundry, bus into the city, etc- and I feel I’m being very generous here!
@roper1313 Thank you! She loved her Key Club experience. The college she will be attending is nationally ranked for Alternative Breaks – volunteering during school breaks – and she is so excited to explore the options there. And she was very thankful for and thrilled to receive the Kiwanis scholarship!
No credit card. I don’t see what they need to “build up credit” for. I think that used to be a thing but is it now? If anyone knows why someone needs a good credit score, can you chime in? To buy a car? We likely wouldn’t want him to finance a car. He should buy one he can pay for in cash. Apartment hunting? Is it true that landlords require a high credit score? What if kids don’t have a credit score? Do employers check it? I guess we could put him on our one credit card as an authorized user and just keep his card here…
S19 has a debit card linked to his checking account. That’s it. He can’t buy anything that he doesn’t have enough money for. If he got in some bind (I cannot imagine what they would be), his account is linked to ours and we would transfer money into his checking account to cover it.
@homerdog we are currently rental searching for a move- all the listings require a score over 650 and some over 700. I have no clue what kids scores look like to start, but of course they’re part of a rental app.
Grads that move to big cities often need a co-signer for their first apartment unless they have established credit. Most grads need a car and cannot pay cash for it so having credit helps there as well.
Maybe I’m clueless, but I had not even thought credit card vs. no credit card. D20 has had a credit card since the beginning of high school (a card with her name from our account). She is free to use it if need be and has never abused this freedom. In addition to this safety net, we’ll ask her what she thinks she needs as a monthly stipend – of course we expect her to come up with something reasonable.
As for “teaching” kids through budgeting, etc. These are simple economic principles, and I can’t imagine much practice is needed to master such basic skills. The goal here is fiscally prudent adults, not money-stressed adolescents trying to manage school, work, and living away from home. That’s just too much adulting all at once lol.
Before I get tarred and feathered, let me say family culture, your kid’s temperament, and financial situation are all part of this equation – there’s no one right answer.
Yes, building credit is still a thing. And you think a college grad will have the cash to buy a car? A halfway decent used car is $6-7k minimum, a decent one is closer to $10k.
You’d be surprised how many intelligent college kids or recent grads don’t know these simple economic principles because their parents didn’t want them to be “money-stressed adolescents”. I’m not saying you should just shove them out on their own while they are still in college. But it’s totally reasonable if they are going to move off-campus and get an apartment with some friends to have them come up with a budget and you give them a monthly allowance for them to manage their bills (which can be adjusted as needed, of course.) I don’t think that is too much adulting at all.
Yes, it’s a thing. In addition to building credit on their own, a credit card in the students name offers more protection from fraud than a debit card.
If your kid wants to be independent and get their own apartment and/or car during or after college, building credit is a good thing.
This is off topic for Covid.
This isn’t a Covid thread. It’s “Parents of the HS Class of 2020”.
It’s just an anecdote, but a friend of mine said she couldn’t buy a car (not finance or lease) because she didn’t have a good enough credit report. She is a stay at home mom so all the credit history was in her husband’s name.
I got a separate credit card in my name, with my d as an authorized user. Only her charges go on there, and it gets paid from her bank account. I only pay for tuition, room, and airfare to and from home. She pays for food, books, clothes, everything else. We did have to stage an intervention when it became apparent that she was reluctant to buy a textbook. I said if she wasn’t going to buy it, I would buy it for her, so she finally caved and bought it.
She spent $400-$500 a month at school this year (no meal plan). I am not sure exactly how much because when getting take out she would pay for friends and they would Venmo her. High COL area.
ETA: her cc and bank accounts are linked to mine, and I keep an eye on her charges and let her know her balances. Waiting for her to take responsibility for that. Sigh.
My S, recent college grad (5/2019), got a pre-paid credit card last summer to get himself started. As long as he paid the balance off every month and didn’t charge close to the limit, he’d get the prepayment $$ back and qualify for an actual credit card in 6 months with a high credit score. He did it and qualified on his own for an apartment; a credit check was part of the application.
My D has a debit card on her own account, which is linked to mine so I can monitor the balance and transfer money in when needed. That’s what we did with her brother, and it worked well. She’s even less inclined to splurge than he is, so I think we’re good!
My son has a credit score of 770 just being an authorized user on my card, so I’m not really concerned with him having his own at this point. I got into a lot of trouble with debt in my early 20’s so I’m pretty leery about encouraging my kids to apply for credit. If he doesn’t mess around and make this a 6 year plan he should graduate debt free and can get a cash car. He’s been driving a $1000 Camry the past 2 years. So a 4-5K car will be a big step up if that’s all he can afford. My hope is the only thing they ever borrow money for is a house, and that’s a ways out.
Hello! Hope everyone is doing well.
S20 had orientation the other day. I really wish this could’ve been done in person instead of online.! Not just because I think getting another visual of the school would be great, but I’m not sure he chose the right classes. He’s liberal arts undecided and signed up for economics, history, poly sci, and Spanish. He also has plenty of AP credits in history and government. I’m not sure all these social sciences will count. Shouldn’t he need a natural science or math? He did meet with an advisor. Of course, I want him to take care of all of this, which is why I wish it had been in person! I guess I just trust that this works out.
He might need a natural science or math to graduate but first semester/quarter those classes are often filled with STEM kids and can be pretty competitive. Since he isn’t a STEM major, it might be a smart decision to wait a semester/quarter and take those classes without the masses. Also, it might be smart to wait to take the lab science until he is sure that the class will be in person.