<p>hello guys. what is the best way for parents to give money to students in college?
i was planning to create a student bank account at BoA in a week. then i searched around the forum and read that money in the bank account might affect financial aid. is this true?
how much money should i have in the bank account for my living expenses?
do you guys also recommend getting a credit card? along with the bank account?</p>
<p>The bank account should come with a debit card to access the account, which is also usable as a credit card. Your parents can put money into the bank account online, but can also refill the balance online on your Cal1 Card you will get to pay for meals and stuff around campus.</p>
<p>Spending money shouldn’t have any impact on financial aid. If they deposit money to let you buy a new Rolls Royce for driving around Berkeley, then yes it might raise a flag with finaid.</p>
<p>Since when can you use a debit card as a credit card?</p>
<p>Get a credit card, use it monthly even if it’s $10 a month and build your credit. Use it wisely, pay your bills on time and you can’t go wrong as long as there’s no annual/monthly fee for the card.</p>
<p>how much money do you recommend to be deposited in the bank account?
i heard that when you fill out fafsa, it might hurt your chances at finaid.</p>
<p>Don’t worry about how much money you have in your bank account… you don’t fill out the fafsa till jan next yr… also, why would you hide your money from the government? That’s illegal.</p>
<p>BoA has credit cards that have no annual fees</p>
<p>It’s not really hiding the money, but it’s a matter of what’s in a student’s or a parent’s name. I’m wondering about this too. Still, I did sign up for a student checking account because it was a good place to keep grad money safe, and for me to put in the other cash I’ve saved up. :)</p>
<p>most banks issue debit cards that are also branded as credit cards and can be used as either, at your choice. Either use as a credit card and sign, or use as a debit card and enter the pin. Wells Fargo, for example.</p>
<p>^ I think you can do that with all debit cards but if you use it as a credit card it doesn’t automatically take the money from your account. It takes about 24 hrs.</p>
<p>exactly - debit absolutely must have the funds available and they are removed when you buy. Credit goes in to the system and may not post for a day. It also may be allowed to go through even though you haven’t yet deposited checks or had a money transfer complete. The most important feature is that you can use it anywhere that accepts that brand of credit card, usually either Visa or MC depending upon the bank, even if they don’t take debit cards.</p>
<p>I’d argue that you should try to get a credit card if you can plausibly get one:</p>
<p>1.) If you’re screwed over for any transaction, it’s the bank’s money, not yours. As such, the bank, which has much more leverage than you, will fight for you. This is not the case with the debit card, where is basically a piece of plastic directly linked to your seemingly safely stored cash.</p>
<p>2.) For most cards, it financially costs the same as long as you pay it off at the end of the month.</p>
<p>3.) It helps build credit; why not?</p>
<p>4.) In the very rare situation that you need to borrow a small amount of money, it’s an easy (but very expensive) way to do so.</p>
<p>But I think the problem for most students is the ability to pay the bill at the end of the month. I think credit cards are excellent when used the way you describe, but that essentially makes them a convenience and not a source of money.</p>
<p>I have a card tied to my parents (though in my name, so I think that still counts towards my credit) for emergencies, but otherwise, I plan to just use a debit card and keep myself protected from potential problems.</p>
<p>Fraud against a debit card empties your account while the bank is investigating it. This can be inconvenient at the very least if you have a bill that is due during that time (or if you wrote a rent check or something that will now bounce because the fraud emptied your account).</p>