A non-financial item to add to your list. If your child flies to their college, get them TSA PreCheck.
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We found that Vanguard would only make electronic bank transfers from our 529 to an account with the parent as a listed owner (they only send to the beneficiary in the form of a physical check). So that meant a joint account was definitely the right way to go, so they received the money to pay their college bill rather than us doing it ourselves. The 1099-Q still listed us as the recipient for tax purposes. And we needed to add those account details 14 days before making the first withdrawal (for security purposes).
We did give the kids a credit card on our account so they can travel for spring break etc, since they wouldnāt have been able to get one with no foreign transaction fees on their own.
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I made sure D22ās passport was renewed, upgraded her license to a REAL ID, am in the process of identifying medical providers covered by our insurance near campus, and will have her complete these power of attorney forms when she turns 18:
We have a joint checking account with her and will add her to a credit card account. She is already on our AAA account.
Someone here suggested building a studentās credit rating by having the student take out a student loan (assuming the student doesnāt otherwise need to take out loans), and then paying it back within a year. Anyone done that? Have experience with the effect on credit rating?
Itās completely unnecessary to take out a loan to build a credit history. Next to timely payments, the biggest factor in credit score is credit utilization ratio. Put your kid on your credit cards with low credit utilization (i.e. cards with high limit but low balance), and youāll see her/his credit score shoot up. My S had 800+ credit score even before he went to college with that strategy.
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Unless you need the loan to pay for college, I would avoid it.
Put the credit card in your studentās name. Have them set up auto pay from their checking account. Have them set up overdraft protection for their checking account from their savings account.
When they move into an apartment, put at at least one utility bill in their name and have them set up auto pay using their credit card.
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Exactly. Use the credit card the same way one would use a debit card. Make regular purchases (coffee, lunch, gas, etc.), then pay them off frequently. Autopay helps with this tremendously.
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Setting up Venmo and rideshare accounts with their credit card should help as well.
If you want to pay for something (books, rideshare, etc), have your student pay for it using their credit card and then reimburse them by depositing money into their account. The exception, I suppose, would be tuition. It is probably smart to add yourself to your studentās university financial account so that you get alerts when payments are due. Some colleges are quick to drop students from classes if their tuition payment is late.
We set up power of attorney for medical decisions through Mama Bear, an online resource it was very easy and then got them notarized. Our daughter has had a checking account and a savings account with our bank since she was 13. Itās very easy for us to move money around our various accounts and monitor her spending and savings and guide her.
The summer before freshman year of college she got her own credit card. Each month we designate something for her buy and then we pay the balance each month. Next year she will be in charge of paying the balance but I have reminders in my phone just in case because weāve drilled into you can never miss a payment or be late. The card has a very small balance so her purchase is something nominal, the limit will increase this summer and we will adjust the utilization once that happens.
My dad did that for me when I was a freshman and I still have the credit card and it really set me up for having stellar credit.
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Our D19 has a joint bank account with me that I use for depositing her monthly rent and utilities, and an Amex Blue credit card in her name on our account. She uses that mainly for groceries and subway travel, and we pay off the full balance every month. She has a paid internship, and her salary goes into the joint account, but she only uses that for discretionary purchases (of which she makes very few). And we do have a medical power of attorney for her.
The plan for S22 is similar. Opened a joint account for him at the same bank when he turned 17 last October, and weāll get him an Amex Blue before college starts. Both kids have been responsible with money so far, and we hope to continue getting them off to a good start.
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Thanks for the pointers, very helpful
Has anyone received a notification that there was an update to their students fasa by the college? We received emails today about this but when we log in we can see there was an update but not what it was? Does not even disclose which college made the update?
Golden advise. Iām thinking to get Real ID for my D as well (she still doesnāt drive).
Question for other parents - Do kids need their original passport when they at college or what are other suggestions?
Thank you for the reminder- D doesnt drive either and I should get a real ID until she passes the exam. Fingers crossed she will learn over the summer.
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Same here, test not taken yet. I still have to get her Real ID and probably apply for a passport card instead of sending the original passport.
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I was going to recommend helping your child get their passport before going off to college. As long as they are older than 16, it is good for 10 years and better to do that before they leave than trying to do it while they are away, especially if they decide to do study abroad.
Passport processing times have been all over the place, and I know of a couple of kids at D20ās college whose plans were derailed by passports not getting renewed in time.
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I was going to do this, but the college where mine is heading to is covering all students for free in their wider net, free medical insurance while on campus. Iāll still keep this in mind, valueable suggestion.
Hmm, point to think. Mineās will expire when sheāll be a sophomore. Iāll probably work on it during her freshman summer so she can carry her 10 year passport with her. Thanks for the suggestion.
If they want to work on campus (ex. *research), they will need their passport.
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Congrats on the decision. The visits make a huge difference and I canāt wait for Cal Day and get this process over with. Are you skipping it now that your D has decided.
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Agree with that. In addition, get a passport card. That is good enough to fly with domestically (and I-9s) and then you can keep the passport book at home.
Take pics of both.
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