Spending money

[Trilliums]

I know this has come up before but hoping we can revisit the topic.

 

I am wondering if son should have a bank acct with branches at the school he attends. He has never had one before. He doesn't keep a wallet or even spend money. Well, that sounds odd, but he wants very little.

 

How do you all handle buying textbooks? Do your kids do that themselves?

 

My son has been tsk

[Jenny in Florida]

My son had an existing checking account with the same bank we use, because we had opened it when he was travelling with his choir. Because it's a national bank, ATMs are easy to find. I'm on his account, and the account is connected to our primary checking account. We have an automated transfer set up so that a small amount goes into his account every week for spending money. When he has a larger expense -- textbooks, competition registration fees, paying the accompanist for his voice lessons, making the deposit for next year, etc. -- he lets me know and I transfer the appropriate amount into the account. He then pays with his debit card or takes out cash, as appropriate.

[regentrude]

I recommend having two independent ways of getting money and paying for things, to have redundancy.

 

DD has a prepaid VisaBuxx card - basically a preloaded Visa card which functions like a credit card but only up to the balance on the card. It also has a PIN and can be used at an ATM, but there will be fees for cash withdrawal. We can transfer money to this electronically, and the money arrives there instantaneously.

 

In addition, she has a checking account at the bank that is located on campus. She has a debit card from this bank,  and now that she is 18, we strongly encourage her to apply for a credit card and use it and pay it off monthly so she can build credit history. We can transfer money electronically to her checking account, but it takes about 3 days.

 

She buys her own textbooks, and we send her the money. We load a certain monthly amount on the visa card for spending money.

[Pawz4me]

DS has a checking account (debit card) through our local credit union. Because that account was started years ago when he was still a minor, my name is also on it. We can monitor it and deposit money as needed. He can get cash from many ATMs without incurring any fee. We also added him as an authorized user on one of our credit cards. He handles his own textbook purchases but we have him pay for them (and any other expenses which DH and I cover) with the credit card because it's easy, will help build his credit score and because of the cash back rewards.

[Annie G]

DS has a checking account (debit card) through our local credit union. Because that account was started years ago when he was still a minor, my name is also on it. We can monitor it and deposit money as needed. He can get cash from many ATMs without incurring any fee. We also added him as an authorized user on one of our credit cards. He handles his own textbook purchases but we have him pay for them (and any other expenses which DH and I cover) with the credit card because it's easy, will help build his credit score and because of the cash back rewards.

 

This is how our kids have handled money at school, with the exception that once they turn 18 we took ourselves off their account.  I can still make deposits but the receipt only shows what I put in, not the account balance.  For their own privacy, I like that. 

 

Dd worked on campus and used direct deposit for her paychecks. 

 

I like them having both a debit card and as an authorized user on our credit card account because there are times they need something and it's just easier to use our credit card. 

[gingersmom]

My daughter has a bank account with debit card and I have her as an authorized user on my credit card and she was issued credit card in her name. She is very responsible and has not abused the privilege of having it to use. She always ask beforehand if she wants to use it for something we had not previously discussed.

[creekland]

Oldest and middle sons got local (at their college) accounts.  We send them checks when necessary, but it's rarely necessary.  Their campus jobs directly deposit their income.  Youngest has kept his account here at home.  Direct deposit allows him to put his campus job income directly in it and he has a debit card he uses when he needs $$.

 

I tend to buy most of their books because I have the time to shop online and find the best deal.  Books can be directly sent to them.  In some cases, their best deal (or only option) is buying what they need at the bookstore.  When that happens, we reimburse their account.  Once they've been there they've found they can buy books more inexpensively from friends who have just finished ___ course.  We pay them for those too.  Any books they sell afterward they can keep the $$ from.  It all helps with their living expenses.  Mine earn the bulk of their living expenses from their jobs on campus.

[Laura Corin]

Calvin has had a bank account for some years, so he has his loans (which arrive at the beginning of each term) deposited into that.  He budgets for his own food and other needs.  When he has receipts for items that are legitimate to withdraw from his 529, he sends those to his father, who transfers that money to his account too.  Calvin is very frugal, so he hasn't done any formal budgeting.

[Kareni]

My daughter had an account at our bank when she was growing up.  Since our bank did not have a branch in the city in which her college was located, she opened an account at a bank here in town that also had a branch there.  When necessary, we deposited funds in her account locally that she could use while at college.

 

Regards,

Kareni

[Muttichen]

My kids earn and manage their own spending money.  They'd rather it be that way -- if I was giving them spending money, they'd be accountable to me for how they spent it.  This gives them freedom and responsibility. They also pay for books and travel back and forth to school.  That is what we consider their contribution for college.  

 

They each have an account at a bank here that they opened in high school.  My name is on those accounts because they were under 18 when they opened them, but I never look at what's there.  I can deposit money in an emergency if they need me to.  My oldest two went to college far enough away that there wasn't a branch of this bank, so they each opened their own account at a bank there.  My middle two have a branch of the local bank across the street from campus, so they haven't needed to do that.

[J-rap]

Our kids still have their accounts in our hometown, and can only get cash through ATM's.  Their campuses have ATM's, and it's never been a problem.  They also all have a credit card on our account, that they know they can use in an emergency.  Oh, and they have debit cards linked to their hometown accounts too.

 

[AK_Mom4]

DS19 and DD21 have accounts at the same credit union we use.  They have debit cards and I can easily transfer money to their accounts for large purchases.   

 

Our credit union offers remote deposit (using smartphone) for checks and DD21 uses that feature all the time as she gives music lessons.   The credit union also belongs to an association of credit unions that offer services in different states.   When DD21 needed an actual printed check to buy a car, she went to a credit union in her town and they cut a check for her from her account and also notarized documents for her.

 

DD21 uses the cash-back feature at grocery stores more often than ATMs because they don't charge her a fee.  DS19 occasionally uses the college ATM.

[FaithManor]

Ds is commuting this year. So, we opened an account at a bank that has branches near campus - I think there is an ATM in the student center - and who offered new customers $100.00 to open the account.

 

Ds got a lot of merit aid so we'll just be using direct deposit from dh's pay for gas, food, and books. If we needed to make payments to the school itself, they have some convenient options that bypass ds remembering to make the payment.

[angela in ohio]

Dd has the same accounts we opened for her in high school at our local credit union so that she could have her pay checks direct deposited. She has a debit card, and we can both log into her online banking and transfer money from our account to her account and vice versa. Her most common way of spending money is online, ordering from Amazon or wherever, and it works perfectly for that. She can also take money out there, though we load her up on cash when she comes home so that she doesn't get the $2-3 ATM fee unless she really needs to.