Thanks for voting!Your little Saver may be ready for college, but what would happen if they arrived only to find no access to cash? A pizza craving could hit at 2 a.m., but you won’t be around to pay the delivery guy. Trust us – they’ll think this is worse than forgetting to turn in a term paper. Preparing your college student’s cash flow may not be your top priority right now. But it should be one of theirs.
Before they head off this fall, tell them to remember their account PINs, passwords and usernames and keep them in a safe place. Have them sign up for online banking. That way, they can keep your address on file with the bank and view statements from the dorm room, quad or cafeteria. Even better, they’ll know ahead of time when to hit you up for more cash (lucky you). Another tip most people don’t think about: tell your prized pupil to check with the bank for the closest no-fee ATMs on and off campus. Don’t just hit up the ATM in the bookstore because it’s closest to the snack line. Check to make sure you’re not paying a fee. Saving on ATM fees can add up to some much-needed munchies or midnight movie tix.
Having quick access to money is important, especially if unexpected expenses pop up. It’s no different for your kids. School them to conserve their cash and prioritize their spending. Help them set limits from the start so they can stretch funds over the entire semester. Or at least until Halloween. What are you doing to help your child get his/her bank account ready for the first day of school?
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This may sound odd, but I would encourage a new college student to get a credit card. This isn’t so they can blow $1200 on a new high-def television. This is so they can use it to establish a credit history. When they get out of college, they will have real expenses and might be saving up for a car or a home. One thing that affects your FICO score is how long you’ve had credit. The longer the better.
True story. I paid cash for everything in college. When I graduated I got a good, well-paying job. One weekend I went to purchase some new furniture for my apartment. I tried to finance it and got rejected. Why? Because I had no credit history.
Teach them to use the credit card as cash. Always pay your balance. Monitor them if you have to.
I agree with Brent. I tried to get a cell phone my senior year of college, and they wouldn’t sign me up because I had no credit history. I had to have my dad get it for me, and I paid him the monthly bill. When I got married, my husband had no credit history either, so we had to put everything under my name until he had built up enough credit. Would’ve been a terrible hassle for him if I’d passed away and nothing was in his name.
I’m currently a college student and let me say, life is pretty terrible when you try to live lean during these years. I work while going to school full time (16 credit hours, oh fun) and make about $200 every two weeks. Half of it goes towards paying down my student loans (Which is zero right now, but will go back up to $3200 in about four weeks) and the other half goes towards food. No car, sold it, no cell phone (Skype it), no real luxuries either.
Funny thing is, I have two more years of undergrad, and then my law school. So I get to enjoy this wonderful lifestyle for many more years.
But I can’t say I regret it, living debt free is pretty awesome. Being able to pay off my student loans while I am in school is going to save me tons of money and time once I am out. My debt could have been well over 15K when I get out of undergrad alone, it is going to be zero when I graduate. That’s pretty freaking awesome! This is on top of the fact that I do have an emergency fund (about $2800, more than a enough for a student) and a great credit score.
I haven’t always been financially savvy, but Ing Direct has made me more aware of my personal finances. Especially reading these blog posts nearly everyday. But I digress, just thought I’d offer a Junior’s perspective on it.
I would disagree with Brent, getting a credit card is a terrible ideal when heading into college. Having an Emergency fun of cash is the smart way and continue life paying cash is the best way. When you pay cash for things having a credit score doesnt matter, so Ryan comment is null and void also, save your money and pay cash, ING is good for it.
Josiah is right. You don’t need a credit score to buy things when you actually have the money to pay for them. Funny concept, isn’t it? Giving a college student a credit card is not responsible. It’s like giving him a loaded rifle with the safety off to sleep with. Our culture is overwhelmingly deceived into thinking that you can’t do anything without debt, when in reality debt is crippling for everyone who has it. And it is indeed more than possible to get by without it. It’s liberating to not have it. Jason makes a great point: he’ll be doing great when he graduates because he’ll be debt-FREE!!!