Credit/Debit Card for DD18 at College

[donnajz]

My daughter will be a freshman in college this fall. This is a first for me since she’s my only child. I was hoping I could get some suggestions on how to best make sure she has money/credit available for anything she needs while she’s away from home. I’d prefer not to be sending cash, and won’t have a car to get to a bank. I was thinking of either getting her a credit card on my account but with her name or some type of debit card that I could periodically load money onto (but hopefully without any type of service fee). Does anyone have any suggestions?

 

[JB2K]

USAA has such things for their banking customers (and you don't need to be affiliated with the military to use their banking products). Their card has no fees and can be easily reloaded by parents.

Otherwise, two other national cards come to mind - Visa Buxx (which may have no/reduced charges to customers of Wachovia, Navy Federal Credit Union, and U.S. Bank) and Walmart has a similar card.

 

[benolathe]

I would think the easiest thing is to just add her as an authorized user on one of your credit card accounts. Then, she has a credit card in her name to use anytime, anywhere.

Actually, I got cards for each of my kids when they turned 16 and started driving/being away from me. I certainly wanted them to have resources available if they absolutely needed gas, wiper blades, any kind of necessity that could come up when they are out and about.

My kids are very trustworthy, and I have never had a problem with them charging items inappropriately. And another 'side benefit' is that when we were opening a new savings account for my son, we found out that he had 'inherited' our credit rating since he is an authorized user on our account.

 

[mrsxsparrow]

When I went to school I had both a credit card on my mom's account and my own debit card.

Since I didn't have a car on campus my first semester, we made sure it was from a bank that had ATMs on campus. I don't like carrying more than $20 cash so a debit card was nice. I used it for the "extras" -- eating out, clothes, non-school books, etc. Once I moved off campus and didn't have a dining plan, my mom would transfer some money into my account each month for groceries and other essential items.

Since I wasn't paying for my schooling at the time, I used the credit card for any school related expenses. This included paper, ink, textbooks, poster boards, parking permits, etc. This was MUCH easier than having my mom transfer some money over whenever I needed it. And once I moved off campus I used it to pay bills (cable, rent, etc).

 

[malibuconlee]

How about just opening a joint checking or savings account with a debit card? She can take money out at an ATM or use it at a store to buy things. Since it's a joint account you can have access and deposit money whenever needed.

I don't think it's a terrible idea for her to apply for a major credit card to start building credit either. Many jobs require travel and having a credit card makes that much easier. Just make sure the limit is small and it's paid off quickly.

 

[Robmom]

I got the Paypal debit card for my DD. I can put whatever amount I want and I can monitor what she is spending. You can also have an alert sent to me if she spends over a limit that I set.

 

[rockethouse]

When I got my checking account at 17, it was tied to both my preexisting savings acct and one of my mom's checking accounts (we're with BofA). We can transfer money between the accounts but neither of us can call up each other's accts on our personal cards at the ATM, for example. She also added me as an authorized user on her credit card.

When I was a junior I got my own credit card, and she stopped sending money to my checking account a long time ago (I'm a senior now), but it was nice to have that option available.

 

[diswish]

Our DD has used the USAA prepaid card for the last 4 years. I like that I can see where it is used, what the balance is and I can load money on it instantly when needed.

 

[GinnyEmma]

Set her up with a checking account and teach her how to use it. Put your name on it too. And tell her often if the evil companies that prey on ignorant college freshmen. Won't she have a job this summer?

 

[Hannathy]

When she knows what school she is going to check and see. most larger schools will have a bank right on campus. My DD opened an account with the bank on campus and they had a student account that didn't have any service fees. She opened it during the summer before and put her checks in it and used the debit card to make sure it worked ok. I am on it also so I can put money in if needed and this is very important!!!! I can call the bank and either freeze it or have them check on use. Like if it is stolen and she is traveling, or if there is a problem and she is somewhere she can't deal with it I can. Otherwise you can't be told anything about the account.

Schools often have their own cards that you can put money on to be used on campus but aren't good like if she wants to go to target. the school card is how they pay for laundry and vending machines and printing and the books store etc.

don't worry it all comes together even if it seems over whelming!

 

[JENOS]

I’m doing for my DD through Chase, you can open up a student account and it will be tied in with yours. The beauty of it is that you can view her accounts and transfer money when needed but she will only be able to view her account and not yours. This is the best option I’ve found so far since totally FREE checking accounts will be disappearing soon with all the big banks (which it has already with chase) unless you have direct deposit, have xxx amount of transactions per month or is a student account.

 

[MrsPete]

I suggest a joint account between the two of you. Benefits: You can deposit at home, and she can withdraw at school. You can both see the account online. You can get a credit card with a SMALL balance attached to this account. Every college we've visited has had at least two ATMs on campus, so check on availability before you open an account.

Random thoughts:

As someone else said, adding your child to YOUR credit card as an authorized user allows her to "inherit" your credit rating (I'm assuming that's a good thing). My daughter's a year younger than yours, and I'm thinking of opening a NEW credit card (thinking $500 limit) for myself with her as an authorized user, never using it myself, and letting that be "her card". I'm thinking that I'd allow her to charge books/supplies on it at the beginning of each semester, and I'd pay that bill. She'd have it for emergencies, but any non-emergency use would be her own responsibility. Then at some point I'd drop my name off the card.

Important: If I had any doubts about my daugther's financial responsibility, I would never do this.

If you're a state employee and your child's going to a state school, don't neglect the option of using your credit union instead of a bank. Every state school in our state has a State Employee's Credit Union on campus, and their rates are much better -- DH and I recently moved our emergency accounts and savings over to the credit union; Bank of America should be ashamed of themselves for their low interest rates.

As someone else said, be SURE to talk to your daughter about how the preditory credit lenders will attempt to prey upon her in the very near future. Warn her that the free tee-shirt or water bottle or the 10% discount off her purchase is not worth it.

Provide her with a small lock-box for her dorm room -- they're widely available. Once she's on campus, all she'll really need on a daily basis is her student ID; it's good for food, making copies, supplies at the bookstore . . . even laundry! Talk to her about keeping her cash, check book, credit cards, maybe even her camera or other small electronics locked up most of the time. In a dorm, it's so easy to leave things lying about while you're just running down the hall to the bathroom, and it's so easy to pop next door for a minute that quickly turns into an hour -- and the whole time your wallet's laying there unattended. In fact, it doesn't even have to be your daughter who leaves things unattended; she could be in class, and her no-classes-this-afternoon roommate could leave the room wide open for an hour. It's so much easier to avoid a theft than to live with the aftermath.

While you're at it, buy her a laptop lock too. They only cost $20 or so at Best Buy, and they prevent "easy opportunity theft". But that's off topic.

I suggest you give her Suze Ormond's book Young, Fabulous and Broke (maybe not as a freshman -- that might be too young). It's focused on people just out of college, and it could set her on the right financial track. I have one of those kids who occasionally adopts the "mom doesn't know anything" attitude, but she believes what she reads.

 

[marie1203]

I think the credit card idea is great my sister has my credit card for emergencies . I have American express I am able to track the purchases and put a limit on her spending if I wanted to.

 

[JENOS]

I suggest a joint account between the two of you. Benefits: You can deposit at home, and she can withdraw at school. You can both see the account online. You can get a credit card with a SMALL balance attached to this account. Every college we've visited has had at least two ATMs on campus, so check on availability before you open an account.

Random thoughts:

As someone else said, adding your child to YOUR credit card as an authorized user allows her to "inherit" your credit rating (I'm assuming that's a good thing). My daughter's a year younger than yours, and I'm thinking of opening a NEW credit card (thinking $500 limit) for myself with her as an authorized user, never using it myself, and letting that be "her card". I'm thinking that I'd allow her to charge books/supplies on it at the beginning of each semester, and I'd pay that bill. She'd have it for emergencies, but any non-emergency use would be her own responsibility. Then at some point I'd drop my name off the card.

Important: If I had any doubts about my daugther's financial responsibility, I would never do this.

If you're a state employee and your child's going to a state school, don't neglect the option of using your credit union instead of a bank. Every state school in our state has a State Employee's Credit Union on campus, and their rates are much better -- DH and I recently moved our emergency accounts and savings over to the credit union; Bank of America should be ashamed of themselves for their low interest rates.

As someone else said, be SURE to talk to your daughter about how the preditory credit lenders will attempt to prey upon her in the very near future. Warn her that the free tee-shirt or water bottle or the 10% discount off her purchase is not worth it.

Provide her with a small lock-box for her dorm room -- they're widely available. Once she's on campus, all she'll really need on a daily basis is her student ID; it's good for food, making copies, supplies at the bookstore . . . even laundry! Talk to her about keeping her cash, check book, credit cards, maybe even her camera or other small electronics locked up most of the time. In a dorm, it's so easy to leave things lying about while you're just running down the hall to the bathroom, and it's so easy to pop next door for a minute that quickly turns into an hour -- and the whole time your wallet's laying there unattended. In fact, it doesn't even have to be your daughter who leaves things unattended; she could be in class, and her no-classes-this-afternoon roommate could leave the room wide open for an hour. It's so much easier to avoid a theft than to live with the aftermath.

While you're at it, buy her a laptop lock too. They only cost $20 or so at Best Buy, and they prevent "easy opportunity theft". But that's off topic.

I suggest you give her Suze Ormond's book Young, Fabulous and Broke (maybe not as a freshman -- that might be too young). It's focused on people just out of college, and it could set her on the right financial track. I have one of those kids who occasionally adopts the "mom doesn't know anything" attitude, but she believes what she reads.

You do not inherit some else’s credit rating (this is totally incorrect); when you co-sign you are helping that person build up their own rating/score with is done by type off accounts, time and payment history among a couple other things.

 

[Swimalie]

Our DD has used the USAA prepaid card for the last 4 years. I like that I can see where it is used, what the balance is and I can load money on it instantly when needed.

When I started college my parents opened up a credit card from USAA with a joint account. They signed but it was in my name. I still have that card to this day (but their names are off it now).

 

[allison443]

OP you might want to check with the school...when we went to dd's summer orientation before she started freshman year, there was a table from a bank where you could set up a student bank account. Apparently this bank has the most atms on the (huge) campus. Since we have a branch near our home as well, we opened her account with them. She deposits her summer earnings and pays her expenses from that. If I needed to deposit extra money (for books or a bus ticket home, if I am paying for that) I can easily do that.

I don't monitor her statement-that's up to her.

 

[Traveliz]

You do not inherit some else’s credit rating (this is totally incorrect); when you co-sign you are helping that person build up their own rating/score with is done by type off accounts, time and payment history among a couple other things.

I agree -- I believe a few years ago (3-5) the laws were changed and now authorized users no longer "inherit" the credit ratings of the main account holder. A joint owner of an account might reap some benefits though.

Liz

 

[mrspaha]

I totally agree with a previous poster who suggested checking things out at summer orientation. For my kids' college, all of the atm's on campus were for a local bank (actually a credit union) in the area. At summer orientation, we opened a checking account with them; it was free checking and they got a debit card which they could use anywhere, as well as the atms on campus. We also set up online banking, so I was able to view their balances/activity and could electronically transfer money from my checking account to theirs.

We also got a master card from citibank. They had a special kind just for college students. It's totally in their names, with no connection to my accounts. They were given a relatively small credit limit. I did not want to give them an "additional" card to any of my credit cards, because I have a much larger credit limit, and in case that card was lost or stolen at college, it was just be much messier.

Plus, I figured this would be a good way for them to start to establish credit. My daughter has since graduated and still uses the same credit card, which also is a cash rewards card where she earns 1% on all purchases with the bonus categories that change each quarter earning 5%.

 

[a1tinkfans]

My daughter will be a freshman in college this fall. This is a first for me since she’s my only child. I was hoping I could get some suggestions on how to best make sure she has money/credit available for anything she needs while she’s away from home. I’d prefer not to be sending cash, and won’t have a car to get to a bank. I was thinking of either getting her a credit card on my account but with her name or some type of debit card that I could periodically load money onto (but hopefully without any type of service fee). Does anyone have any suggestions?

My ds has a Disney Visa Card in his name (added from my account, a HS'er )..you can actually do it all right online thru your account (if you have one) and they will then call you back to verify all the info..Always covered under the fraud protection too....

 

[GinnyEmma]

OP you might want to check with the school...when we went to dd's summer orientation before she started freshman year, there was a table from a bank where you could set up a student bank account. Apparently this bank has the most atms on the (huge) campus. Since we have a branch near our home as well, we opened her account with them. She deposits her summer earnings and pays her expenses from that. If I needed to deposit extra money (for books or a bus ticket home, if I am paying for that) I can easily do that.

I don't monitor her statement-that's up to her.

I'd agree, except it doesn't sound as thought this kid has had any training in this area. My personal thought would be to spend a few months working with her. Late is better than never. I see kids make terrible money mistakes freshman year.