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Post by bc2ca on Jun 30, 2015 17:29:31 GMT
DD was at the doctor yesterday for the first time since turning 18. She had to sign financial responsibility paperwork and a release if she wants any of her medical info to be shared with me and/or DH.
Then we went to the bank and she had to decide what type of account she wants because her no-fee teen account isn't an option anymore. The only thing we didn't decide is if she will get a credit card right now, but she is leaning to getting one mostly for buying gas.
I shouldn't have been surprised by either of these but was a little and am now wondering if there is anything else that we need to take care of/change with her turning 18.
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georgiapea
Drama Llama
Posts: 6,846
Jun 27, 2014 18:02:10 GMT
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Post by georgiapea on Jun 30, 2015 17:32:40 GMT
Voter registration. She's now eligible to vote. And as a woman, she doesn't, but all males who turn 18 have to register for the draft.
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Post by Patter on Jun 30, 2015 17:35:04 GMT
Healthcare can be a pain once they turn 18. My girls have many health issues, and it has been hard. Make sure if you use a mail-in pharmacy that she signs their document for you to be able to talk to them about her medications, order them, etc. If not, she will have to do it all. For my girls, it's not always possible for them to do it so I have access to all of that too as well as all of their healthcare stuff. And if there is a refund from a doctor's office or even the university for a cancelled class, etc., the check will be sent back in their name not yours even though you paid. Those are the things we have run across that have been a bit of a pain, and I wished I would have known. Hope this helps you in some small way.
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Post by Patter on Jun 30, 2015 17:35:36 GMT
Voter registration. She's now eligible to vote. And as a woman, she doesn't, but all males who turn 18 have to register for the draft. Oh yes, my girls were SO excited to vote in the last Presidential election. They had just turned 18 only the month before!
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MsKnit
Pearl Clutcher
RefuPea #1406
Posts: 2,648
Jun 26, 2014 19:06:42 GMT
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Post by MsKnit on Jun 30, 2015 17:36:34 GMT
My son turned 18 today. Never thought about any of that. LOL!
He needs to go to the DMV to get his Learner's permit renewed. Plus, he has graduation money that he will use to open his own 'adult' account. I am concerned about the debit card aspect. But, he has to learn.
He registered for whatever 18 year old boys register for when he set up his FAFSA account.
I'm trying to remember if there is anything else. But, I'm sure there will be plenty come up that we didn't think of.
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Post by Bitchy Rich on Jun 30, 2015 17:41:59 GMT
Then we went to the bank and she had to decide what type of account she wants because her no-fee teen account isn't an option anymore. The only thing we didn't decide is if she will get a credit card right now, but she is leaning to getting one mostly for buying gas. I would definitely get her a credit card. She pays it on time, and it's great for her credit history.
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Post by genny on Jun 30, 2015 17:44:18 GMT
We just went through the same thing. We registered him for the draft via FASFA, but he had to go upgrade his Driver's License to a different class and register to vote. He has had some health issues lately, and I went to all the appointments with him. I still signed the financial liability part, but he did everything else. I believe his account is still considered a student account since he will be starting college in the fall - I probably need to check into that!
It's definitely different territory isn't it?
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Post by bc2ca on Jun 30, 2015 17:49:02 GMT
Voter registration. She's now eligible to vote. And as a woman, she doesn't, but all males who turn 18 have to register for the draft. How did I forget this one?!?!
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Post by Linda on Jun 30, 2015 17:50:01 GMT
Then we went to the bank and she had to decide what type of account she wants because her no-fee teen account isn't an option anymore. The only thing we didn't decide is if she will get a credit card right now, but she is leaning to getting one mostly for buying gas. I would definitely get her a credit card. She pays it on time, and it's great for her credit history. I disagree - why get her started on debt at 18? Teach her to manage her money and not to stress about her credit history - not having a credit history isn't nearly as big a problem as having a poor credit history. We just switched from a bank to a credit union and they pulled our scores as they have a minimum score requirement. My son (almost 24) doesn't have a credit history (he has paid cash/debit for everything) and he had no problem switching On the other hand, a credit card or not is HER decision to make not yours...she is 18 and that means she gets to make her own decisions even when she makes poor ones and she's the one who has to live with the consequences.
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Deleted
Posts: 0
May 18, 2024 21:44:17 GMT
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Post by Deleted on Jun 30, 2015 17:56:26 GMT
I would definitely get her a credit card. She pays it on time, and it's great for her credit history. I disagree - why get her started on debt at 18? Teach her to manage her money and not to stress about her credit history - not having a credit history isn't nearly as big a problem as having a poor credit history. We just switched from a bank to a credit union and they pulled our scores as they have a minimum score requirement. My son (almost 24) doesn't have a credit history (he has paid cash/debit for everything) and he had no problem switching On the other hand, a credit card or not is HER decision to make not yours...she is 18 and that means she gets to make her own decisions even when she makes poor ones and she's the one who has to live with the consequences. It may become a problem when she tries to buy a home. That would be a hard thing for most Americans to buy with cash only. A credit history for getting a mortgage would be important.
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georgiapea
Drama Llama
Posts: 6,846
Jun 27, 2014 18:02:10 GMT
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Post by georgiapea on Jun 30, 2015 18:03:11 GMT
Establishing credit is very important. She absolutely should have at least 1 credit card, using it regularly and paying off the balance each month.
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Post by Linda on Jun 30, 2015 18:04:20 GMT
@coilstrand I'm pretty sure you can still get a mortgage with no credit history - you're not going to get a zero-down loan most likely but truthfully, zero-down loans are disappearing fast for good reasons anyway. I think it's called a manual underwrite where they pull together stuff like paying rent and utilities etc... to show that you have a history of paying bills on time.
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Post by anonrefugee on Jun 30, 2015 18:10:37 GMT
Watching this thread for more tips. I'm paranoid he'll somehow forget to register for the draft and get I trouble. Voter registration will make him happy!
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Post by Bitchy Rich on Jun 30, 2015 18:12:53 GMT
I would definitely get her a credit card. She pays it on time, and it's great for her credit history. I disagree - why get her started on debt at 18? Teach her to manage her money and not to stress about her credit history - not having a credit history isn't nearly as big a problem as having a poor credit history. We just switched from a bank to a credit union and they pulled our scores as they have a minimum score requirement. My son (almost 24) doesn't have a credit history (he has paid cash/debit for everything) and he had no problem switching On the other hand, a credit card or not is HER decision to make not yours...she is 18 and that means she gets to make her own decisions even when she makes poor ones and she's the one who has to live with the consequences. I didn't say to get her started on debt. If you pay off your credit card in full every month, there is no debt. And learning to do that when you are 18 and have very few bills is a handy thing to learn. I think people stink at using credit cards because they never learned to use them responsibly.
Credit history is important for insurance discounts, and for loans other than mortgages.
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Deleted
Posts: 0
May 18, 2024 21:44:17 GMT
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Post by Deleted on Jun 30, 2015 18:14:39 GMT
I would definitely get her a credit card. She pays it on time, and it's great for her credit history. I disagree - why get her started on debt at 18? Teach her to manage her money and not to stress about her credit history - not having a credit history isn't nearly as big a problem as having a poor credit history. We just switched from a bank to a credit union and they pulled our scores as they have a minimum score requirement. My son (almost 24) doesn't have a credit history (he has paid cash/debit for everything) and he had no problem switching On the other hand, a credit card or not is HER decision to make not yours...she is 18 and that means she gets to make her own decisions even when she makes poor ones and she's the one who has to live with the consequences. If she pays it in full each month, which the parents can monitor at this point while emphasizing the importance of doing so and the risks of not doing so, it's not getting her started on debt. It's establishing healthy, prudent financial habits. If she waits to get her first credit card (which she almost assuredly will get sooner or later), she misses out on the direct guidance on appropriate usage. A credit card is virtually required to function in the world if you ever want to travel without hassles and it's much much much more difficult to buy a house if you don't have *any* established credit. Having no credit history can cause other issues too, like in employment screening.
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ginacivey
Pearl Clutcher
refupea #2 in southeast missouri
Posts: 4,685
Jun 25, 2014 19:18:36 GMT
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Post by ginacivey on Jun 30, 2015 18:18:02 GMT
that would be the selective service
a list of men that they would use in the even the draft is ever used again
gina
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Post by auntkelly on Jun 30, 2015 18:19:27 GMT
If she is going to college, you'll need to get her login and password if you want to be able to access her account. At the schools my kids go to, we couldn't pay their tuition w/out that info.
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Deleted
Posts: 0
May 18, 2024 21:44:17 GMT
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Post by Deleted on Jun 30, 2015 18:19:28 GMT
@coilstrand I'm pretty sure you can still get a mortgage with no credit history - you're not going to get a zero-down loan most likely but truthfully, zero-down loans are disappearing fast for good reasons anyway. I think it's called a manual underwrite where they pull together stuff like paying rent and utilities etc... to show that you have a history of paying bills on time. Yes, Dave Ramsay likes to talk about the mythical unicorn of manual underwriting. Sure, it exists. With EXTREMELY limited options, and I don't mean zero-down mortgages. I mean decent rates. You are at the mercy of the underwriter - you can't shop your loan because so few companies will underwrite that way. So, sure, if you want to tilt at windmills and never ever have any credit except a manually underwritten mortgage, please go ahead and pay a higher rate for that mortgage and end up paying thousands - more likely tens of thousands of dollars - in unncessary extra interest over the years. Sounds like a great use of funds.
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Post by bc2ca on Jun 30, 2015 18:21:10 GMT
I would definitely get her a credit card. She pays it on time, and it's great for her credit history. I disagree - why get her started on debt at 18? Teach her to manage her money and not to stress about her credit history - not having a credit history isn't nearly as big a problem as having a poor credit history. We just switched from a bank to a credit union and they pulled our scores as they have a minimum score requirement. My son (almost 24) doesn't have a credit history (he has paid cash/debit for everything) and he had no problem switching On the other hand, a credit card or not is HER decision to make not yours...she is 18 and that means she gets to make her own decisions even when she makes poor ones and she's the one who has to live with the consequences. I don't think having a credit card is getting started on debt, but is a big part of learning to manage her money as well as build credit history. IIRC the credit available to her would be under $800. She is a financially responsible kid and has managed her own money for a couple of years. I doubt she would use a credit card for much more than gas at this point. It is up to her and she wanted to think about it for a few days to make an informed decision rather than deciding immediately while at the bank.
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Deleted
Posts: 0
May 18, 2024 21:44:17 GMT
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Post by Deleted on Jun 30, 2015 18:23:27 GMT
Have her get a credit card with a low limit to it. Have her use it then pay it in full each month.
reasons: if a debt card is compromised the person has access to ALL her money and it can be a pita (if not impossible) to get it back. A cc offers a margin of safety in that it can be cancelled and you haven't lost everything in the bank. I only use my debit card in the ATM at my bank branch. I do not use it for any type of shopping (remember Target in November?)
Many places you need a good credit history to rent (housing) or even a credit history to get some jobs.
Teach her good credit habits now and it doesn't have to be a huge pit fall.
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melissa
Pearl Clutcher
Posts: 3,912
Jun 25, 2014 20:45:00 GMT
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Post by melissa on Jun 30, 2015 18:24:27 GMT
I have an 18 yo and I am going to side with linda on this one. I do not think it is necessary, depending on the individual circumstances. All dd did was register to vote. She had planned to buy a lottery ticket but did not yet. We did not feel it was necessary for her to have a credit card at this time. She has a debit card for now. She has no income other than payment from a few weeks of dancing in NYC and a little babysitting job she'll have in August. She trains full time as a dancer and goes to college part time. If we got her a credit card now, we'd be the ones paying the balance each month. Additionally, don't those under 21 need to show proof of income or have a co-signer? I am pretty sure they do. If your child is already good at budgeting their money, there is no big rush to establish a credit history at age 18. It can wait. Oh, and she has certainly traveled coast to coast in the US alone with just her debit card and she went to Russia with just a debit card. It's not a necessity. ETA; We only keep a small amount of money on her debit card at once. She tells us when she needs to more on the card if she's shopping for something that will be more than the $300 that is typically in her account. It works for us and she doesn't have to deal with the minimum charge issue in NYC for credit cards (which is legal there).
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georgiapea
Drama Llama
Posts: 6,846
Jun 27, 2014 18:02:10 GMT
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Post by georgiapea on Jun 30, 2015 18:42:26 GMT
Anonrefugee, some states will not renew drivers licenses once the male driver turns 18 without draft registration. However...... my state is one of those and nothing ever happens. Supposedly one can be fined and jailed. Supposedly. I guess what does happen is that federal student loans can not be taken out is the male applicant has not registered for the draft. Even though nobody has been drafted since 1973.
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luckyexwife
Pearl Clutcher
Posts: 3,067
Jun 25, 2014 21:21:08 GMT
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Post by luckyexwife on Jun 30, 2015 19:02:49 GMT
I would definitely get her a credit card. She pays it on time, and it's great for her credit history. I disagree - why get her started on debt at 18? Teach her to manage her money and not to stress about her credit history - not having a credit history isn't nearly as big a problem as having a poor credit history. We just switched from a bank to a credit union and they pulled our scores as they have a minimum score requirement. My son (almost 24) doesn't have a credit history (he has paid cash/debit for everything) and he had no problem switching On the other hand, a credit card or not is HER decision to make not yours...she is 18 and that means she gets to make her own decisions even when she makes poor ones and she's the one who has to live with the consequences. My dad got me a credit card when I turned 16. He encouraged me to charge a few things a month, then when the bill came, he sat down with me and explained exactly how interest works. I had to calculate how much it would cost if I only paid the minimum, and how long it would take to pay off. It only took a few minutes a month, but it left a huge impact on me. Why pay to use someone else's money for little things? When college came around, and there were credit card sign up tables with all kinds of free gifts, I was surprised how many people signed up without understanding how it worked. I helped a few friends figure it out and make a simple budget.
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MsKnit
Pearl Clutcher
RefuPea #1406
Posts: 2,648
Jun 26, 2014 19:06:42 GMT
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Post by MsKnit on Jun 30, 2015 19:04:52 GMT
that would be the selective service a list of men that they would use in the even the draft is ever used again gina Thanks! I was having a brain fart. I knew what it was for, but couldn't remember the name. All I could come up with was the secret service and knew that was wrong. LOL!
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Post by compwalla on Jun 30, 2015 19:06:33 GMT
@coilstrand I'm pretty sure you can still get a mortgage with no credit history - you're not going to get a zero-down loan most likely but truthfully, zero-down loans are disappearing fast for good reasons anyway. I think it's called a manual underwrite where they pull together stuff like paying rent and utilities etc... to show that you have a history of paying bills on time. Yes, Dave Ramsay likes to talk about the mythical unicorn of manual underwriting. Sure, it exists. With EXTREMELY limited options, and I don't mean zero-down mortgages. I mean decent rates. You are at the mercy of the underwriter - you can't shop your loan because so few companies will underwrite that way. So, sure, if you want to tilt at windmills and never ever have any credit except a manually underwritten mortgage, please go ahead and pay a higher rate for that mortgage and end up paying thousands - more likely tens of thousands of dollars - in unncessary extra interest over the years. Sounds like a great use of funds. You were nicer than I was going to be. I would have, however, been more succinct. "GTFO of here with your Dave Ramsey manual underwriting bullshittery." My kid just turned 18 also and we've been converting all his kid things to adult things. He doesn't have a credit card just yet but that is probably coming soon. He did convert to an adult checking account with real checks and a debit card instead of the pre-paid card we had been using.
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Deleted
Posts: 0
May 18, 2024 21:44:17 GMT
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Post by Deleted on Jun 30, 2015 19:11:05 GMT
Yes, Dave Ramsay likes to talk about the mythical unicorn of manual underwriting. Sure, it exists. With EXTREMELY limited options, and I don't mean zero-down mortgages. I mean decent rates. You are at the mercy of the underwriter - you can't shop your loan because so few companies will underwrite that way. So, sure, if you want to tilt at windmills and never ever have any credit except a manually underwritten mortgage, please go ahead and pay a higher rate for that mortgage and end up paying thousands - more likely tens of thousands of dollars - in unncessary extra interest over the years. Sounds like a great use of funds. You were nicer than I was going to be. I would have, however, been more succinct. "GTFO of here with your Dave Ramsey manual underwriting bullshittery." My kid just turned 18 also and we've been converting all his kid things to adult things. He doesn't have a credit card just yet but that is probably coming soon. He did convert to an adult checking account with real checks and a debit card instead of the pre-paid card we had been using. Exactly. These days getting any type if mortgage is hard enough. With no credit history it's near impossible. Learning to use credit wisely is one of the best and most important things we can teach children.
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Post by melanell on Jun 30, 2015 19:25:53 GMT
Have her get a credit card with a low limit to it. Have her use it then pay it in full each month. I was thinking the same thing. I think my first credit card had a limit of $200.00 or something like that. I doubt anyone offers such a low limit all these years, later, but she can certainly start with a low limit by today's standards.
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Post by Zee on Jun 30, 2015 19:55:28 GMT
I would agree that now is the time to learn how to manage credit cards responsibly. They don't have to be a bad thing, and if it's paid off and she establishes a good credit history now, it will help her immensely in the future.
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Post by Linda on Jun 30, 2015 19:56:30 GMT
To each their own. My oldest is nearly 24 - he completed his AA degree without student loans; he bought a vehicle without a car loan; he has a smartphone without a contract and he doesn't have nor does he intend to get a credit card or charge card. So far it's working for him. He's headed into the military in November so mortgages aren't an immediate concern for him but given how well he's doing with retirement savings and stock purchases - I suspect he'll do okay saving for a down payment when the time comes.
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Post by genny on Jun 30, 2015 19:57:33 GMT
When college came around, and there were credit card sign up tables with all kinds of free gifts, I was surprised how many people signed up without understanding how it worked. I helped a few friends figure it out and make a simple budget. This. I wasn't taught how to use credit. I signed up for EVERY SINGLE ONE OF THOSE TABLES when I started college. Low limits, but to someone working a very part time job, paying them off at the end of the month wasn't as reasonable as I imagined. I had poor credit management for a while and went into my marriage with credit card debt for stupid things that I wouldn't have bought if I hadn't had the credit card(unfortunately so did my DH). It was a hard lesson to learn while we were trying to get on our feet. It's so easy to screw up your credit in a short time, but takes so much longer to repair it! We haven't broached the credit card thing with DS yet, but I'd better do it before orientation now that you reminded me about those tables set up at school! I had forgotten all about that little trap.
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