Oh, how well do I know!

What happens if they lose that card?

Bank of America (not my fav bank but)has a student checking where there are no fees and they get a visa check card. We told son it was NOT a credit card, so he never used it as credit and made sure he never spent more than his balance. In three years he only made one error and they have a forgiveness poliscy, plus they have a keep the change program. Example, if they make a purchase for 6.88 it's rounded to the next dollar and the change goes into his linked savings. He uses it to this day for everything and at the end of the month has some extra bucks in his account.

This card has a zero liability policy if lost or stolen. There are other prepaid cards that also have this same feature; just be sure to research it.

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made sure he never spent more than his balance. In three years he only made one error

Sounds like your son manages his money a bit more responsibly than mine does!

Our son has his own account, yet I am able to view his activity daily online. We have an agreed upon amount that I transfer to his account. If I have an issue with his spending habits, I call him and ask about it. I am not sure he knows that he can go over his known balance. Fortunately he knows the difference between Pending and actual, he keeps track. It really works well for us, especially when unexpected expences come up, I can just transfer the exact amount right to his account. If he ever has an issue with overages - it goes to him not me.(none so far)
Also, son does not have a car. We just told him freshman year, no car, deal. If he bums rides from friends a lot then I send a pre-paid gas card to that lovely friend so he can fill up every now and then (that way they don't have cash to spend on who knows what) although I am not that silly - I know they could spend a gas card on anything that is in a gas station minimart, so far they like to fill up

My son has a no fee account at college and one here in Canada. Both are joint with my wife so we can transfer money and also get info. He has an ATM on campus and a no fee one near his apt. Also a joint Visa with a $500 max. That is rarely used and not for general purchases.

My son, a sophomore this year, has a checking account with an ATM card and this works out very well for him. I deposit money, he takes it out. The first year he went to the wrong ATMS and had a number of small charges for the use. After we found him an ATM where there were no fees things have gone along quite well. For people with highschool kids, if I had it to do over, I would have given them x amount of dollars for the week and made him budget.

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Originally posted by Infield08:

quote:

made sure he never spent more than his balance. In three years he only made one error

Sounds like your son manages his money a bit more responsibly than mine does!

Mine worked in HS. Usually when they work and have to spend their own money they quickly understand that money doesn't grow on trees and usually has to come from another source besides that metal ATM machine with the buttons.

BTW folks, tell your kids if in doubt of a machine go to the nearest drugstore for a pack of gum and get cash back instead of ringing up ATM charges. This is especially important if you use an out of town credit union.

TPM: good tip about ATM cards and way to avoid charges.

BTW, my son works in HS. He has either mowed lawns or worked construction for the past 5 years, spring through fall. He still has a ways to go in the financial responsibility department, however!

I added up all of the transfers to my two daughter's accounts. One is in graduate school on fellowship and other is a sophomore. This did not include tuition, or cost of flights, but did include books and sorority dues: $10,000/year each. Its expensive living in New York City and Atlanta. My son will be much less expensive...all he needs is his 4 X 4, crystal light, meat, and his bat and glove.

daughter who has her OWN ACCOUNT, called today needing some "parking money".

I said: "what the heck is parking money???"

reply: "it's the money to pay my (past) parking tickets so the tow truck
(across the street by my car) doesn't hook up"

just another thought about where the college allowance goes as some universities charge surreal fees for parking

I have heard tell of situations where a student's parking fees would have totaled over $2000 for 3 yrs(excluded fresh yr) of permits to park nowhere near where he has to be, and having more permits issued than actual spaces exsist.

it was proved that if the $2000 budgeted was deposited in a student account that one could get thru 3 yrs by parking ANYWHERE on campus w/o a permit,
and ... by only being required to pay outstanding tickets when booted or towed, that actual cost should be in the range of $500-$700 total for the 3 yrs.

that's what I heard anyway

btw, not my daughter's case, as because she bought ONE (1) permit ... her tickets have been permanently linked to me