money access for college student

[MrsPete]

The one thing I know for sure is that the more of their own money in the game, the higher the grades!

False. Human behavior is much more complex than that. Rather, consider how the student's done in high school: Has the student opted for challenging classes, worked hard in those classes, kept up with his reading, been conscientious about his work -- that is, without prompting from you? If so, he's likely to continue to do the same thing in college. Has he been appreciative of things you've provided for him in high school, or does he have an "entitlement attitude"? Again, he's likely to do the same thing in college. Is he serious about going to college and is he excited about his potential classes and career, or is he just going because "it's what people do after high school"? A student who's ready and mature is going to do well regardless of who's paying, whereas a student who isn't really ready won't do well regardless of who's footing the bill.

Case in point: We've covered everything for our oldest, and she's earned only two Bs in her first two years of college.

 

[pryncess527]

The one thing I know for sure is that the more of their own money in the game, the higher the grades!

That may have been true in your household, but in my experience it is NOT universally true.

 

[sk!mom]

The one thing I know for sure is that the more of their own money in the game, the higher the grades!

Disagree. I think success in college has much more to do with maturity. Not to mention that the kind of student they've been indicates the kind they will be.

I do think that providing your own fun money is motivational for some students. It is for my DD. However, in my experience having to provide too much of the school cost can overwhelm an 18 year old. Working too much can lead to dropping out.

 

[keiraliz]

I'm a senior in college. When I started college, my parents decided to pay for a credit card to use for groceries/necessities, travel expenses (I attend a school out of state and they wanted me to be taken care of in case I had flight delays/cancellations and couldn't get home), emergencies, and going out with friends. However, they trust me to use the credit card appropriately, and I've never abused this privilege. I know that if I abuse it, the credit card will be taken away (as it should). On the other hand, my sister will not be getting a credit card because my parents don't trust her to use it appropriately yet.

Additionally, I work during the school year as a writing tutor and a grader for one of my professors. Because I'm student worker for my school, about 75% of my paycheck goes toward my tuition. The other 25% goes directly toward my savings account and I can do whatever I want with it, but I don't touch it because I plan to use it to help with expenses once I move out on my own.

 

[MrsPete]

I'm a senior in college. When I started college, my parents decided to pay for a credit card to use for groceries/necessities, travel expenses (I attend a school out of state and they wanted me to be taken care of in case I had flight delays/cancellations and couldn't get home),

This makes me think about something that happened to us recently:

My oldest flew to visit friends internationally. She paid for the trip herself, but since it was an international flight that included layovers and connecting flights, I gave her my credit card in case of an emergency. Since she started driving, I have handed her my credit card and had her run errands for me -- we've never had one minute's trouble with it, and the biggest thing she's ever bought without my authorization was a pack of gum or a box of cookies, which she'd jokingly call "her fee for doing the grocery shopping".

Well, on her way home from her trip, -- sure enough --she had an emergency, and when she called, one of my first thoughts was, "She'll be okay -- she has access to money." Long story short: Flight cancelled, airline gave her a hotel voucher and meal vouchers, hotel wouldn't let her check in (even though they know the airport's hotel vouchers) because her passport and ID didn't match my credit card, and they wouldn't accept her debit card as a security for the room -- even though our last names match, even though she's clearly a 20-year old traveling with a parent's credit card.

Before she goes farther away than I can drive in a couple hours, I am going to be sure she has a credit card in her own name. The situation is unlikely to repeat itself, but I was a nervous wreck.

 

[sk!mom]

Before she goes farther away than I can drive in a couple hours, I am going to be sure she has a credit card in her own name. The situation is unlikely to repeat itself, but I was a nervous wreck.

DD's card came in the mail yesterday. Her college is 4 hours from home so we decided to get a card on one of our accounts in her name. She will have this for emergencies only. Although, I imagine that we might authorize gas before a trip home.

When she went to the bank to switch her student account over to a University account to continue to avoid fees, they tried to push a cc on her. We have forbidden that. We do not carry cc debt and don't want her to fall into that. I see college as a time for her to continue to learn to manage her resources- as limited as they are. After college, she should be mature enough to use reward cards responsibly if she chooses.

 

[::Snow_White::]

Debit Card. I set up a savings account at 16, and then when I began my Freshman year of college my ID card was attached to my university checking account which is where all my scholarship money was deposited that wasn't paid towards tuition. That was attached to the same bank as I used at home. I could only use my University ID on purchases in certain places so I went to the bank and got a debit card attached to the same account for any other/online purchases (which is all I use now). I'm a senior in college. Not really for the credit cards.

 

[MrsPete]

DD's card came in the mail yesterday. Her college is 4 hours from home so we decided to get a card on one of our accounts in her name. She will have this for emergencies only. Although, I imagine that we might authorize gas before a trip home.

When she went to the bank to switch her student account over to a University account to continue to avoid fees, they tried to push a cc on her. We have forbidden that. We do not carry cc debt and don't want her to fall into that. I see college as a time for her to continue to learn to manage her resources- as limited as they are. After college, she should be mature enough to use reward cards responsibly if she chooses.

I don't disagree with the idea that a college student should learn to manage within a limited budget, and I'm much more anti-debt than even the average financial conservative. Keep in mind, though, that having a credit card doesn't mean falling into revolving debt. My daughter has shown that she can manage within a budget, and she's handled her checking account /debit card well. She's ready to add a credit card to the mix, and we've talked in detail /looked at the math concerning revolving debt.

I don't mind telling you that when my 20-year old college student was several thousand miles away from me and found she couldn't use the card bearing my name, I was pretty scared.

 

[sk!mom]

I don't disagree with the idea that a college student should learn to manage within a limited budget, and I'm much more anti-debt than even the average financial conservative. Keep in mind, though, that having a credit card doesn't mean falling into revolving debt. My daughter has shown that she can manage within a budget, and she's handled her checking account /debit card well. She's ready to add a credit card to the mix, and we've talked in detail /looked at the math concerning revolving debt.

I don't mind telling you that when my 20-year old college student was several thousand miles away from me and found she couldn't use the card bearing my name, I was pretty scared.

We are very debt intolerant but we are big users of reward credit cards for the travel advantage. We charge absolutely everything and pay it off every month. DD is just 18. She has so far managed her allowance and now paychecks very well but I'm not ready to let her try a cc until she's managed on her own for a couple of years. By 20, I would imagine that we will encourage her to get her own card for the benefits as by that time she should be a proficient manager of her finances and can avoid the pitfalls.

 

[aprilgail2]

We are very debt intolerant but we are big users of reward credit cards for the travel advantage. We charge absolutely everything and pay it off every month. DD is just 18. She has so far managed her allowance and now paychecks very well but I'm not ready to let her try a cc until she's managed on her own for a couple of years. By 20, I would imagine that we will encourage her to get her own card for the benefits as by that time she should be a proficient manager of her finances and can avoid the pitfalls.

Its odd to me that you think your adult daughter has to have permission from you to get a credit card- she can get one with or without your "permission"

 

[pryncess527]

Yeah, they've thankfully stopped predatory lending on campuses, but college students are still bombarded with offers of easy credit. Plenty of companies are eager to hand them cards without expecting a parent to sign off on the application, even if they have no actual income. I was amazed at the amount of credit I could get at 18.

 

[sk!mom]

Its odd to me that you think your adult daughter has to have permission from you to get a credit card- she can get one with or without your "permission"

I was waiting for someone to say that.

I'm aware that she can do as she pleases as far as this and everything else is concerned. However, what we have told her is that if she wants us to pay her school costs so that she can graduate without student debt then she better also refrain from consumer debt.

Believe it or not, I'm not a helicopter parent at all but if I'm still paying the bills I will have a few requirements- good grades, steady progress toward graduation, and no debt accumulation.

I may feel so strongly about this because I know of a couple of instances where in just a year or two a student was still in school and struggling with cc debt already. If I'm sacrificing to pay for a degree without debt then I will not have her in debt because she shopped and ordered pizza. She seems too level headed to let that happen but I've witnessed more than one situation where an 18 year old went a bit crazy with credit. As I said, after a couple of years of managing her limited resources, I imagine that she will get a cc.

 

[keiraliz]

This makes me think about something that happened to us recently:

My oldest flew to visit friends internationally. She paid for the trip herself, but since it was an international flight that included layovers and connecting flights, I gave her my credit card in case of an emergency. Since she started driving, I have handed her my credit card and had her run errands for me -- we've never had one minute's trouble with it, and the biggest thing she's ever bought without my authorization was a pack of gum or a box of cookies, which she'd jokingly call "her fee for doing the grocery shopping".

Well, on her way home from her trip, -- sure enough --she had an emergency, and when she called, one of my first thoughts was, "She'll be okay -- she has access to money." Long story short: Flight cancelled, airline gave her a hotel voucher and meal vouchers, hotel wouldn't let her check in (even though they know the airport's hotel vouchers) because her passport and ID didn't match my credit card, and they wouldn't accept her debit card as a security for the room -- even though our last names match, even though she's clearly a 20-year old traveling with a parent's credit card.

Before she goes farther away than I can drive in a couple hours, I am going to be sure she has a credit card in her own name. The situation is unlikely to repeat itself, but I was a nervous wreck.

How scary! I'm glad everything worked out and your daughter was safe. My parents are completely supportive of me going to a school out of state, but this is the exact situation my parents didn't want to happen to me. Thus, they got a credit card in my name.

 

[PlutoPony]

We got our son a CC with his name on it on one of our CC accounts when he got his driver's license at 16, mainly to make me feel better in case of an emergency. We have an agreement on what he can use it for - gas, books, and a few other things - and so far he's held to that (just finished freshman year in college). He knows I go through the CC bill with a fine toothed comb each month and realizes he's going to get busted if he uses it for something we haven't agreed to so no problems in 3 years.

That said, I'm leaning towards getting him a CC this summer that's just his. Think we can do that at the bank we all do business at, without us needing to be co-signers. My main reason is I want him to see how much spending can add up... $10 here, $25 there - that kind of stuff - and start getting a better feel for what it costs to live. Also interested in helping him get his credit established before he graduates college. That will make it a lot easier to get an apartment and generally start out on his own.

He does have a debit card attached to his checking account but I"m not a fan of them, mainly because of security and it can be difficult to get $$ back if there's a mistake in your account. We caution him to keep fairly minimal funds in the checking account that's accessed by his debit card, so if someone were to hack in he wouldn't lose too much. Computer security on a college campus can be somewhat problematic, especially when kids are using routers instead of ethernet cords.

 

[NewCrew42]

When both of our children turned 16, we set-up an account for them at our local bank. They learned to deposit checks for work and also had a debit card.

When DS left for college, we set-up an account for him with the bank that has an ATM on campus. This way he doesn't pay fees to get cash. He also has a debit card for this account.

 

[MrsPete]

Its odd to me that you think your adult daughter has to have permission from you to get a credit card- she can get one with or without your "permission"

You didn't address this comment to me, but it turns out my 20-year old DOES need "my permission" to get a credit card.

After the incident I described in which she was caught up in an emergency out of town, she and I separately came to the conclusion that it was time for her to have a credit card in her own name . . . so she did some research on rewards points, she asked my advice on how best to proceed, and the credit card company turned her down for lack of income. I was genuinely surprised. Her "real job" is working hard in college, but she has a part-time job that pays more than minimum wage. I figured she'd be given a card with a very low limit (which was what we both wanted her to get).

I've begun to think that the predatory credit card people who worked so hard to put my generation in debt in the 80s have switched tactics: I think "the thing" now is to push the kids towards student loans instead of credit cards; after all, it works out the same way. If you can get the kids to borrow more than they need for their tuition, they don't need the credit card. My daughter is a junior now and our mailbox is still filled with "we know you need to borrow" letters. I suspect she would get a "yes" if she were to apply for a store card, but what she wants -- and is beginning to need -- is a real, general card that can be used anywhere.

Like most 20-year olds, she may legally be an adult -- but on a realistic, practical level, she's still a kid and is dependent upon us.

 

[tvguy]

You didn't address this comment to me, but it turns out my 20-year old DOES need "my permission" to get a credit card.

After the incident I described in which she was caught up in an emergency out of town, she and I separately came to the conclusion that it was time for her to have a credit card in her own name . . . so she did some research on rewards points, she asked my advice on how best to proceed, and the credit card company turned her down for lack of income. I was genuinely surprised. Her "real job" is working hard in college, but she has a part-time job that pays more than minimum wage. I figured she'd be given a card with a very low limit (which was what we both wanted her to get).

I've begun to think that the predatory credit card people who worked so hard to put my generation in debt in the 80s have switched tactics: I think "the thing" now is to push the kids towards student loans instead of credit cards; after all, it works out the same way. If you can get the kids to borrow more than they need for their tuition, they don't need the credit card. My daughter is a junior now and our mailbox is still filled with "we know you need to borrow" letters. I suspect she would get a "yes" if she were to apply for a store card, but what she wants -- and is beginning to need -- is a real, general card that can be used anywhere.

Like most 20-year olds, she may legally be an adult -- but on a realistic, practical level, she's still a kid and is dependent upon us.

Funny since banks have special cards just for college kids with no income.

 

[pryncess527]

so she did some research on rewards points, she asked my advice on how best to proceed, and the credit card company turned her down for lack of income. I was genuinely surprised. Her "real job" is working hard in college, but she has a part-time job that pays more than minimum wage. I figured she'd be given a card with a very low limit (which was what we both wanted her to get).

This is probably why. She was applying for a good card, with a rewards program, that is typically marketed towards adults with a solid credit history/score. There are still no shortage of cards that will approve college kids with little or no income, they just aren't the kinds of cards anyone who does research would pick out.

 

[dcfromva]

Funny since banks have special cards just for college kids with no income.

I thought they had changed the rules about 5 years ago which tied approval to verifiable income or getting parents to cosign.

http://www.federalreserve.gov/consumerinfo/wyntk_creditcardrules.htm


https://www.creditcardinsider.com/insider/how-do-i-get-a-credit-card-and-build-credit-if-im-under-21/

http://www.creditcards.com/credit-card-news/help/how-credit-card-reform-impacts-young-adults-1282.php

 

[MrsPete]

This is probably why. She was applying for a good card, with a rewards program, that is typically marketed towards adults with a solid credit history/score. There are still no shortage of cards that will approve college kids with little or no income, they just aren't the kinds of cards anyone who does research would pick out.

Nail.
Head.
Hit.

She asked me about credit cards and read online before choosing the one she thought would be good for her, and it isn't one that's typically targeted at students.