Back-to-School Financial Advice For Parents And Students
BY: Brent Landrum
- Financial Overview: Teach your student what it means to deposit into and withdraw from an account. This is, essentially, Banking 101: They should be able to track what is coming out of their account, and be mindful of when they need to make deposits.
- Overdrawing an Account: Students may not understand the adverse impacts that overdrawing an account can have. They should understand that there may be fees when their account has a negative balance, and that that can, in turn, hurt their financial records.
- Paying Your Bills: Paying bills is likely a foreign concept to students heading off to college. Teach them how to read a bill, explain to them the consequences of late/non-payment, and ensure that they feel comfortable handling this responsibility on their own.
- Type of Account: Discuss the differences between checking and savings accounts, and which (perhaps both?) is most beneficial to the student.
- Account Capabilities:
- Get the student online banking access.
- Download the bank’s mobile app and learn its features.
- Set up any recurring bills to be paid using the bank’s Bill Pay
- Account Requirements:
- Find an account that has no minimum opening/daily balance
- Understand terms and requirements to avoid unnecessary fees.
- ATM Access:
- Discuss using no-fee
- Know the location of convenient and no-fee machines.
- Know Your Account: Understand all of the requirements and capabilities of your account.
- Know Your Banker: Develop a relationship with the banker that opens your account. Save their contact information and utilize them as a resource when you have questions or additional needs.
- Know Your Budget: Know what you owe for bills every month, as well as how much is coming in and out of your accounts. Most importantly, live within your means!