Parents, Are Your Children Heading to College This Fall? Questions For a Banker?
Feel free to read on and ask any questions you would like.
Several banks have student checking. This can reduce or eliminate the checking account service charge. If your child is going away to college, does their bank have a branch near school? Is there one near home?
Debit card: This a great way to make purchases and access funds. However, there are some dangers. If you are not writing down your purchases or keeping track of your balance, you could incur expensive overdraft fees. One requirement with a debit card is that you choose if you are going to opt in/opt out.
- Opt In: Your transaction can be paid at the banks discretion, overdraft fee can be charged. (ex...avoid embarrassment grocery store line when not enough cash)
- Opt Out: If there is not enough money in the account, the transaction will be declined. Thereore there's no purchase but ther also won't be fees.
Overdrafts: Overdrafts, I've found, are the hot button issue at the customer service counter of banks and credit unions. Go negative on your account balance, what is it going to cost? Some banks charge a one-time fee and a daily fee. Some banks charge a one-time fee and a weekly continuous overdraft fee. You better know how this happens before you loose your hard earned money.
Online banking: This is an interesting part of banking. Parents can send money to kids as well as transfer funds. Bills can be paid directly. This is a great source for managing your funds. Know what you have and what you can spend.
What part can I explain further? How can I help you get your children off on a good foot? Also, take these thoughts and information and sitdown with your Trusted Banker.
Gofaq Uurslf
7:06 pm on Thursday, March 8, 2012
Good advice. Now if you bankers weren't so overbearing on fees.
My bank found out the hard way that they weren't going to charge me $35 to keep my $25k in a 1% IRA CD.
Craig
7:15 pm on Thursday, March 8, 2012
Sent my kid off to college in the Fall. Before leaving we met with the VP of a local bank to open student checking. Was promised no fee's. One month later, and a fee was on the statement. Kid called and was told, "we no longer have student checking."
THEY NO LONGER HAVE ME EITHER!
James Gottemoller
8:37 pm on Thursday, March 8, 2012
Nate the Hate, you made the right move. If what your bank offers doesnt make sense, then you have to shop. Keep in mind too, that you might even speak with a licensed financial rep when comes to making choices for your IRA. 1% CD is capital protected. But are you market protected. Personally, my rollover IRA is with a good management program and doubled since 2009. I am not a licensed broker, but I would encourage you to seek one or even ask a friend who works in investments for advise. The agent, I use is in Germantown. If you are interested, I will share him privately.
Gofaq Uurslf
8:51 pm on Thursday, March 8, 2012
James, my CD was my conservative portion of my overall portfolio. I have a brokerage account with some mutual funds and individual stocks elsewhere for my aggressive plays. When a banker offers me free checking to keep my large stacks at their bank, I laugh. I have large returns to sweep up.
James Gottemoller
8:47 pm on Thursday, March 8, 2012
Craig, Good feedback. There are many banks and credit unions. If what is told to you at one place changes or doesnt meet your needs, seek another. 2 large institutions I previously worked for and they are represented in the area offer student checking. Pay close attention to details. What is nice, our area M.Falls is well represented by financial institutions. Check the bank's online page. Then you can narrow down to the banks and CU that you want to talk too.
Please feel free to ask additional questions and please take the information with you as you speak to each bank. My purpose is to inform and help consumers to be able to make good choices. I am also on facebook at "Banking Advisor"
James Gottemoller
8:57 pm on Thursday, March 8, 2012
Excellent Nate the Hate. Glad to hear you are diversified and well prepared. Better to have multiple sources and not dependent on the $25k CD. Thank you for sharing on the blog.
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James Gottemoller
1:35 pm on Friday, March 9, 2012
Great feedback on a 1st time blog. 1 added feature to consider when speaking with your future college student, what about a savings account? This can be an additional tool to help manage money so that not all is in the checking account. It allows for budgeting weekly amounts and to keep what isnt needed in an interest drawing capacity (even if it is a low rate, still better than zero). Institutions can provide additional perks for the extra account. Good overdraft protection product too. I would think that your trusted banker would recommend tying the savings to the checking as an emergency overdraft protection plan. (I was curious to see if anyone would bring savings up as an option).
Leanne Verhaalen
5:46 pm on Monday, March 12, 2012
James, what is the difference between a mortgage refinance and a modification? -Leanne
James Gottemoller
5:49 pm on Monday, March 12, 2012
leanne, thank you. I will have to research this question. I have thoughts but I want to be accurate.
Leanne Verhaalen
4:55 pm on Tuesday, March 13, 2012
I am balancing my checkbook today. I wrote out a donation check last September and it still has not cleared. How long before I can add that one back in to my balance? Does a check get too old for someone to cash it?
James Gottemoller
9:45 pm on Tuesday, March 13, 2012
Leanne,
Years ago, 6 mths the check was stale. The only problem today is that the processing is so quick that it is doubtful if it will get caught. I would keep it figured in your checking account balance and check with the outfit you donated too. They could be holding it and forgot it. Recommendation for the future, If you have online banking, some banks will replace a check for free if it was issued by the bill pay.
James Gottemoller
8:58 pm on Saturday, April 28, 2012
Parents, looking for a good tool to help your college bound child start to manage money? The checking account is a really good tool. Budgeting, decision making (can I really afford such and such) are just a few of skills that they can learn. Money management is a key step in eventually obtaining credit.