CeeScraps
Pearl Clutcher
~~occupied entertaining my brain~~
Posts: 3,829
Jun 26, 2014 12:56:40 GMT
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Post by CeeScraps on May 29, 2015 23:33:09 GMT
Alrighty, my turn....our dd is going off to college in the Fall. For those of you that have been there/done that...what did you set up for your child to have access to money that you put in their account? Neither my dh and I have a debit card. Is that the way to go? If not, what do you suggest? Are checking accounts just accounts for old people?
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scorpeao
Pearl Clutcher
Posts: 4,521
Location: NorCal USA
Jun 25, 2014 21:04:54 GMT
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Post by scorpeao on May 29, 2015 23:36:20 GMT
My dd set up her own checking account last summer. I am on it just so I can access her money (for her) if needed. The plan was I'd add money while she was away at college and she'd use her debit card. They still call it a checking account, you just don't have to order any checks. My dd is now going into the Navy, so I suppose she'll open her own account for direct deposit with the Naval Credit Union.
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Post by myboysnme on May 29, 2015 23:36:27 GMT
I opened an account with my son and I transfered money to it. He has a debit card for that account.
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amandatx
Shy Member
Posts: 45
Jan 29, 2015 20:19:22 GMT
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Post by amandatx on May 29, 2015 23:39:03 GMT
My son set up a student account with Chase Bank. It was the best option for him with fees (none) and easy access (there is a branch on his campus). We just use our phones or go online and send him money. I have friends that set up Paypal and got the debit card for their kids and just send money that way.
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Post by renateb on May 29, 2015 23:39:29 GMT
my son had to open an account for direct deposit of his check from work. we will transfer money into that account for him to access while he is away. He'll learn quick how to use a debit card if he wants any money.
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Deleted
Posts: 0
May 19, 2024 19:37:25 GMT
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Post by Deleted on May 29, 2015 23:41:37 GMT
A checking account is probably the easiest way to go - they can get cash and they can use a debit card. They probably won't ever use any checks.
Talk to you bank about the best way for you to deposit money. There can be a lot of variables there. You want to be sure that you aren't an owner on the account, because if you are, and your child overdraws their account, technically, the bank could draw from your account to cover it (most banks *don't* actually do that in those kinds of situations, but you almost always do agree to the right of offset in account terms, so they legally could).
ETA: When I was in college, my parents paid tuition, room and board, but spending money was on me after freshman year. Freshman year, they gave me a set amount at the beginning of the year and it was up to me to budget appropriately and make that last the year. I made some dumb choices at first, but quickly learned how to be smarter with my money. It was a great learning experience. They were clear that there was going to be no additional spending money (beyond any Christmas gifts I might receive), so I knew better than to ask.
Personally, I'd consider not even getting in a situation where you are regularly transferring money. When you always know more is coming, it's easier to keep spending.
I did have a credit card on their account that was for emergencies only. And I knew they meant it - anything less than a true emergency and I would have been in HUGE trouble. I never needed to use it, but I think it made my mom feel better just in case.
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Post by hop2 on May 29, 2015 23:45:24 GMT
1 the college itself has a method to load money to their ID card online. 2 there's a branch bank here and there of the same bank 3 it's not hard to transfer money online.
For us it was must important to pick a bank that was accessible from her campus. And we went from there.
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luvnlifelady
Pearl Clutcher
Posts: 4,421
Jun 26, 2014 2:34:35 GMT
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Post by luvnlifelady on May 29, 2015 23:52:09 GMT
We are heading back up to DD's college town next month (she will be attending in the fall). We were there around Thanksgiving but didn't have a car so we couldn't explore a ton). I want to see if there is a Wells Fargo there. So far, I've only seen Union Bank. We bank with WF and she has an account there, so that would be easier but can set one up at Union if we need to.
I'm wondering how much to budget for her a month though. There are no food services at her small school, so she will be walking a short distance to get groceries. She then has a full kitchen (no oven) in her shared student apartment. I'll also give her a small amount for entertainment (not a whole ton to do there) but I also hope she finds a small job in town.
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Post by epeanymous on May 29, 2015 23:57:52 GMT
You know, it is funny. I went to college in the early 1990s, and it never occurred to me to do anything other than walk myself to the bank near my university, open my own checking/savings account, and have my parents send me checks to deposit into my account. I am not suggesting that is the best way to go (and there may be all sorts of reasons not to do it), but I did find that I was both hyperaware of how much money I had in my account at all times and loathe to ask my parents for money because the whole stilted process made me realize exactly how much they were sending and what a burden it likely was for them. I do that being entrusted with the responsibility of setting up my own account was good for me.
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luvnlifelady
Pearl Clutcher
Posts: 4,421
Jun 26, 2014 2:34:35 GMT
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Post by luvnlifelady on May 30, 2015 0:04:22 GMT
I rarely get to the bank anymore myself although I have to go sometimes since my paychecks are not direct deposit. I find it easier to track expenses with a debit card and there's also no delay in transferring if they should need $ in a hurry.
ETA: We also have the Paypal card for DS and DD had it too. The only downside to that is they charge a fee if the child wants cash from the card.
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iowgirl
Pearl Clutcher
Posts: 4,135
Jun 25, 2014 22:52:46 GMT
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Post by iowgirl on May 30, 2015 0:08:07 GMT
I doesn't hurt to have a book with them. I am sure all places are different, but my kids have had to use their checks a couple times to pay for school fees. Also - they needed the check blank for routing numbers when they got jobs and had to set up direct deposit.
Have them keep good records (or at least remember to know where to find their records online) - they can get get a tution tax credit when they file their taxes.
They make their own money (and have since they were 12) and manage their own funds. Our local bank has student accounts that have no fee's as long as they are students until they reach age 22.
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Post by bc2ca on May 30, 2015 0:08:39 GMT
We are heading back up to DD's college town next month (she will be attending in the fall). We were there around Thanksgiving but didn't have a car so we couldn't explore a ton). I want to see if there is a Wells Fargo there. So far, I've only seen Union Bank. We bank with WF and she has an account there, so that would be easier but can set one up at Union if we need to. I'm wondering how much to budget for her a month though. There are no food services at her small school, so she will be walking a short distance to get groceries. She then has a full kitchen (no oven) in her shared student apartment. I'll also give her a small amount for entertainment (not a whole ton to do there) but I also hope she finds a small job in town. You can check online to see if there is a branch in her college town. My kids both have WF accounts with debit cards and will continue to use those. I can easily transfer money into their accounts if needed. With online transfer of funds available now I think checks are going to disappear in the next few years.
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Post by mikewozowski on May 30, 2015 0:20:00 GMT
my kid (out on her own with first job after college) doesn't even have a check book. they use debit and online transfers.
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back to *pea*ality
Pearl Clutcher
Not my circus, not my monkeys ~refugee pea #59
Posts: 3,149
Jun 25, 2014 19:51:11 GMT
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Post by back to *pea*ality on May 30, 2015 0:22:49 GMT
Our Bank offered student free checkng. DS opened an account, my name was on it, he got a debit card and checks. I could transfer money from my account into his.
He he lived off campus after the first year and paid his rent with a check. Also, the roommates would sign up to be the account holder for gas, electric, cable and others paid for cleaning supplies, toilet paper groceries and they used checks to true up with each other each month.
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luvnlifelady
Pearl Clutcher
Posts: 4,421
Jun 26, 2014 2:34:35 GMT
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Post by luvnlifelady on May 30, 2015 0:50:23 GMT
We are heading back up to DD's college town next month (she will be attending in the fall). We were there around Thanksgiving but didn't have a car so we couldn't explore a ton). I want to see if there is a Wells Fargo there. So far, I've only seen Union Bank. We bank with WF and she has an account there, so that would be easier but can set one up at Union if we need to. I'm wondering how much to budget for her a month though. There are no food services at her small school, so she will be walking a short distance to get groceries. She then has a full kitchen (no oven) in her shared student apartment. I'll also give her a small amount for entertainment (not a whole ton to do there) but I also hope she finds a small job in town. You can check online to see if there is a branch in her college town. My kids both have WF accounts with debit cards and will continue to use those. I can easily transfer money into their accounts if needed. With online transfer of funds available now I think checks are going to disappear in the next few years. Some places have already stopped accepting them.
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CeeScraps
Pearl Clutcher
~~occupied entertaining my brain~~
Posts: 3,829
Jun 26, 2014 12:56:40 GMT
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Post by CeeScraps on May 30, 2015 0:52:34 GMT
Nickel and dime us is exactly what my concern is. I too don't want to get into that.
How much is a reasonable amount to allot for a year's worth of spending? I don't recall how I got cash at college. I think I probably went some place, cashed a check and that was it. I also don't recall spending that much money. I had to buy Sunday night dinner as it wasn't available through the college.
Keep the suggestions coming! We want to get this right from the start. To those of you that have gone through this please continue to share your experience!
Thanks ladies!
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Post by stampinbetsy on May 30, 2015 0:52:42 GMT
DD has a checking account that she uses her debit card for. DH and I are both on the account for now. We also opened an account at the same bank (it is not our main account - we bank at a local bank and dd goes to school out of state).
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Post by hop2 on May 30, 2015 1:22:43 GMT
Nickel and dime us is exactly what my concern is. I too don't want to get into that. How much is a reasonable amount to allot for a year's worth of spending? I don't recall how I got cash at college. I think I probably went some place, cashed a check and that was it. I also don't recall spending that much money. I had to buy Sunday night dinner as it wasn't available through the college. Keep the suggestions coming! We want to get this right from the start. To those of you that have gone through this please continue to share your experience! Thanks ladies! lol when I was in college I got cash from the 1st national bank of DAD and it was always in person and usually involved him feeding me a meal. I both like ( for convenience ) and dislike ( no excuse to meet up ) that it's so easy to send money today. I have some very very fond memories of those meet ups with my dad. <3. Sigh
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Post by 950nancy on May 30, 2015 1:50:49 GMT
My son decided to go to college about 20 minutes up the road. He did sign up for the dorms. He'll probably just use his current bank. He's got his own account and has his own money from mowing lawns since he was 10.
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ellen
Pearl Clutcher
Posts: 4,509
Jun 30, 2014 12:52:45 GMT
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Post by ellen on May 30, 2015 1:50:52 GMT
My daughter recently changed her teen checking to a college checking. We bank at Wells Fargo. There is a bank less than a mile from her campus and I believe they have a cash machine on campus too. I can transfer money into her account. My daughter knows now that we are done putting money into her account. We are paying for all of her college costs, car, insurance, and phone. Basically she just has to pay for clothes, fun, and personal expenses. She has a job and is pretty good about saving money. She can work during her breaks from school. We have advised her to get a job on campus for a few hours a week and she'll be in great shape for money all year long. It'll be interesting.
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Post by monklady123 on May 30, 2015 2:44:54 GMT
My dd has a checking account and she has had to write a check or two every once in awhile. She paid some sorority thing with a check, and I forget why. lol She has a credit card, not a debit card. Her debit card number was stolen at a restaurant when she was in high school. The fraud department of the bank called to inquire whether she was in the next town over from us purchasing $700 worth of electronics at Walmart. Um, no. She was at school. oy. So the thing about the debit card is that while you do get the money back you're stuck without it for several days, until the bank gets it back. With a credit card you're never out that money. We started her out with a student credit card, limit $500. We figured it was good practice in getting used to handling credit and paying the bill on time, paying it off completely every month, etc. Our bank has a branch right across the main street from her school so that works well. At the beginning she was actually writing a check to pay her bill because she was afraid to do something wrong online. It was actually me, her Dinosaur Mother, who told her to pay it online. She was hesitant about going to the bank and talking to someone about it (as she said to me, "Mom, that's like something an *adult* does!" rofl) -- Anyway, she went over there and of course they were very helpful. I mean, it's a branch directly across the street from a university in a town where there isn't much of anything else except the university. So they're very used to helping students learn how to use new accounts. lol So now she pays online. I put money in her account every once in awhile. She doesn't ask much though because she has the money she earned over the summer. But I don't mind giving her some, she works hard. The university also has the kids' ID card that acts like a debit card on campus and at quite a few places in town -- CVS, bookstore, eating places, all the buses, etc. So I put money there at the beginning of the semester and that's what she uses the most. I just do an online transfer from our account to hers. Love online banking.
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CeeScraps
Pearl Clutcher
~~occupied entertaining my brain~~
Posts: 3,829
Jun 26, 2014 12:56:40 GMT
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Post by CeeScraps on May 30, 2015 10:54:32 GMT
I like the idea of giving her money for the school year. That way she has to budget it out. How much do those of you with experience feel is a realistic amount?
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Post by Patter on May 30, 2015 11:17:52 GMT
My girls have had checking accounts with debit cards since about their junior year of high school. I can deposit money into their accounts any time. Since they have debit cards, they can shop and get cash anytime they need it. Has worked great for 2 years of college thus far.
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scrapaddie
Drama Llama
Posts: 5,090
Jul 8, 2014 20:17:31 GMT
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Post by scrapaddie on May 30, 2015 12:05:13 GMT
My DD had her own checking account. I set up an automatic deposit from my paycheck so that she received her monthly allowance.
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Post by worrywart on May 30, 2015 12:26:36 GMT
We used Chase for my son's account and I am an authorized user so that I can access it to transfer money in. Since it is a college account, it is free with no minimums. We did not get checks, just a debit card. The app for the phone or ipad is great and easy to use.
My son went with a years supply of money (his money) and honestly the first semester burned through a lot of it. We did not give him an allowance but will this year since he is basically out of money for the most part.
He is on a meal plan and has no car with him so we will probably give him 150/month to cover his minimal expenses (which at this point is basically going out to eat, a little dry cleaning/hair cuts. Honestly, I am not sure if this is too much, not enough...don't know!!
He did much better budgeting the 2nd semester (money was running low lol). Good luck!
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ReneeH20
Full Member
Posts: 452
Jun 28, 2014 16:00:48 GMT
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Post by ReneeH20 on May 30, 2015 12:43:25 GMT
We have done different things. When my kids were living on campus, we did the putting semesters worth of spending money on the college account thing. Their IDs worked as debit cards on campus letting them access anything they needed. They also had their teen checking accounts changed to college accounts. One of my kids had a hard time cashing checks because there was no ATM or branch on campus (surprising because our bank is Wells Fargo).
Now one is living at home going to school and the other lives off campus in an apt. The kid living off campus got a credit card and that has been nice as they can pay for books or transit pass and I can just deposit money in their checking account. Then they can transfer the money from the bank account to the credit card. Both DH and I stress paying it off every month. They also had to get actual checks to pay their rent each month (before that no need for checks). We transfer a certain amount of money per month into the account for rent, utilities, food, etc each month. They also have a part-time job.
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CeeScraps
Pearl Clutcher
~~occupied entertaining my brain~~
Posts: 3,829
Jun 26, 2014 12:56:40 GMT
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Post by CeeScraps on May 30, 2015 12:50:11 GMT
So--dd needs a checking/debit card where we have access to deposit money.
I like the idea of an allowance from my check being direct deposited into her account. I also like the idea of a budget she has to figure out.
Ughh......
Thanks--
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ellen
Pearl Clutcher
Posts: 4,509
Jun 30, 2014 12:52:45 GMT
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Post by ellen on May 30, 2015 12:54:16 GMT
I like the idea of giving her money for the school year. That way she has to budget it out. How much do those of you with experience feel is a realistic amount? I'd be interested to know this too. We've been trying to talk about managing money, but it would be helpful to know how much money a typical college kid spends during a school year.
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CeeScraps
Pearl Clutcher
~~occupied entertaining my brain~~
Posts: 3,829
Jun 26, 2014 12:56:40 GMT
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Post by CeeScraps on May 30, 2015 13:11:53 GMT
I just googled to see what was out there for a dollar amount. It seems like $200/month. That sounds like an awful lot to me, but, it's been years so I don't know. The plan we have for the moment is for dd to pay for her "fun" expenses from her job. I just think for us to give her $200 above that is a lot.
Oh, and someone out in Google land suggested having your child track expenses closely to see what they are spending their money on the first month. Then evaluate what the monthly allowance should be.
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Post by iamkristinl16 on May 30, 2015 13:27:53 GMT
How is your DD with money now? Has she had a job? Has she had any experience managing money yet? I would be hesitant to give her the whole years amount at one time. I used to have a job that paid once a month, instead of twice, and most people complained about it and had difficulty managing the money to the end of the month. I think the longest I would go is once a month. $200 a month might sound like a lot, but it could go fast if she is eating out, going to movies, buying clothes, etc. Giving her the whole amount at once the first time could be a disaster if she is a spender by nature.
ETA that I just read that she does have a job. I agree that $200 above that is a lot, depending how much she is working. I would go with your plan of having her track her expenses and go from there, but I would also look at what her expenses have been so far this previous year. I know the circumstances are different but you would get an idea of what her needs are based on her social life, etc.
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