When your kids head off to college, it’s a good time to also make sure they’re prepared to manage their own finances.
- Help them find a bank that meets their needs. Conveniently located ATMs may lessen the use of out of network ATMs with higher fees. It can also help to have overdraft protection on their checking account.
- Establish priorities and encourage budgeting so that overdrafts can be avoided to start with. The cost of books should get priority over pizza night with friends. Even better, have your child find a good budgeting app and ask them to teach you how it works.
- Consider having your child apply for their own credit card. But be careful: banks are more cautious these days about lending to students without any credit history. If that’s the case, you may have to be a co-signer. In that situation, your child can still learn to monitor spending and pay the bill each month, but you are ultimately responsible and the card activity will be part of your credit history.
Going to college is an exciting time in your child’s life. With these important lessons, your future graduate will be well on their way.
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