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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?

7 Responses to “College Student Finances?”

  1. Lots of Ideas Says:

    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:

    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:

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

  4. LivingAlmostLarge Says:

    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:

    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:

    Credit card.

  7. My English Castle Says:

    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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