As you start your child on his (or her) academic journey in college, there are obviously so many considerations. One of the avenues that he will need to learn a great about is his finances. Of course, before he sets off, you’ll need to discuss his financial future. Will he be paying for college himself or will you be assisting him? Does he have a bank account already or will he need to open one on campus? Certainly, financial advisers like Michelle Smith Source Financial can offer you insights and advice before the big day.
In a recent article, Sheryl Nance-Nash explains that students will be bombarded with advertisements for credit cards and bank accounts when they get to campus. There are certainly things to consider when looking into the on campus banks. As Maria Brosnahan, market manager at Valley Bank in Rockville Centre advises,
“Students often open a checking account with the bank on or close to campus because of ATM fees. But the bank may hit them with other monthly fees, such as maintenance fees. Look at the details. Another local bank may offer an account specifically for college-aged adults with no monthly fees and may reimburse ATM fees.”
In addition, your son will want to find an account with no minimum balance requirements. Also, just because your son is opening a bank account doesn’t mean that he should feel pressured to also get a credit card. Michelle Smith, Source Financial Advisors CEO warns against this type of trap. Credit cards can be very tempting to college kids but can cause students to run up a great deal of debt. As Michelle Smith warns, it’s important to do your homework and to know what you’re getting into before signing for credit cards or any other financial items.