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College Student Finances?

July 6th, 2020 at 11:36 pm

Spending some time this week getting DD ready for university and looking for some ideas. She has a debit card, but I wonder if she should have a secured credit card? Or if we should get her a card on our account? It seems the secured card would help her build credit, and there are several with no fees. We'd link it to her checking account and pay it off every month.

Any advice? Ideas?

Posted in Offspring | 7 Comments »

7 Responses to “College Student Finances?”

  1. Lots of Ideas Says:
    July 7th, 2020 at 01:18 am 1594081101
    1594081101

    I think there are benefits to using a credit card over a debit card, provided she only charges what she can afford to pay.

    If you need to dispute something, the credit card company will freeze the amount during the dispute.
    If you buy something like tickets and the event is cancelled, they will seek the refund for you.
    Cash back on purchases with the right card. Or airline miles if she will need to travel for school.

  2. disneysteve Says:
    July 7th, 2020 at 02:01 am 1594083665
    1594083665

    We had DD sign up for her own credit card the instant she turned 18. She got a rewards card from Bank of America. If she uses the card at least once each month (regardless of the amount) and pays anything over the minimum every month, she gets $25/quarter back. She gets an extra $5/quarter for having her account with BOA so she earns $120/year cash back no matter how much or how little she spends. I think they started her with a $900 credit limit, which was more than enough for her, and they've raised it a couple of times since (she's 24 now). There is no annual fee.

  3. disneysteve Says:
    July 7th, 2020 at 02:02 am 1594083739
    1594083739

    Also, of course, she always pays the bill in full each month and never carries a balance.

  4. LivingAlmostLarge Says:
    July 7th, 2020 at 05:49 am 1594097341
    1594097341

    CC of course! Gotta build good credit and better habits. Might as well learn early that a CC isn't free cash. It's the exact same thing as a debit card. NO different. Use a check register if it's hard to understand

  5. Creditcardfree Says:
    July 7th, 2020 at 03:20 pm 1594131631
    1594131631

    Our daughter's have their own debit card. Neither are big spenders. I think about a year ago we added them to our credit card as authorized users to build credit and to have if a larger emergency charge would be needed, particularly one we would be covering anyway. They both forget they have it usually, but older daughter did charge a car repair and flute repair. Youngest used it once when her debit card wouldn't work at a restaurant. No regrets.

  6. Carol Says:
    July 7th, 2020 at 04:57 pm 1594137428
    1594137428

    Credit card.

  7. My English Castle Says:
    July 8th, 2020 at 09:10 pm 1594239040
    1594239040

    Thanks all; I had planned on a credit card, so will get the application done today. Our DD is about the lowest maintenance kid on the planet. She never asks for anything except occasionally a coffee or ice cream. Her high school had great personal finance classes and she hears me talk about money a lot, so I completely trust her.

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