Teaching your college kid how to better manage money is one of the best lessons you could ever provide, and you don’t have to do it alone. Financial pro Ann Jones created this “best of” money tips and tools for the college years while preparing her son for his freshmen year. Jones is Senior Vice President of Marketing and Business Development at Michigan Schools & Government Credit Union (MSGCU).
There is no shortage of “what to take to college” lists. Power cord to pillow desk, laptop to laundry soap, sheets to shower shoes. What’s often omitted is one of the most important things your college kid will ever need: money. While it might seem obvious working for a financial institution, the reality was that Jones had a lot of questions about her son’s money needs at college. The search for answers led her to create her own list, which is all about helping college kids make smarter, safer money choices, right from the start.
1. Learn more before you go.
While your college-bound teen may already have a debit card or savings account, it’s always a good idea to review the basics of good financial management. You can share your own experience and Jones also recommends tapping a trusted learning resource, like your bank or credit union.
MSGCU offers abundant educational resources for members and the community, all at no cost, including content specifically for teens:
- Getting Started with Cash & Credit workshop covers the proper usage of checking and lending products
- Student Financial Success interactive playlist, filled with quick, 5-minute lessons
- Helpful blog articles
- Credit Union Certified Financial Counselors available at any of our local branches to provide one-on-one support.
2. Make a money plan.
What expenses will your student be covering? Make a list. For example: Books, takeout, entertainment, loan payments. What expenses will you be covering? For example: Tuition, meal plan, housing, transportation. What will be your student’s income source? Will they have a job? Will you provide an allowance?
Taking the time to talk through money needs now and throughout your child’s college career will help set expectations and guide decisions. For more help, visit MSGCU's budget resources as well as the U.S. Department of Education Federal Student Aid site.
3. Partner up wisely.
Swipes, clicks and taps have changed how we spend, share, save, and manage money. It’s important to help your college student understand that behind the app or website is a financial institution in the business of money. Remind them to check for fees and premiums as these costs can add up quicker than you think. There may be a lower cost alternative such as choosing a credit union over a bank.
Credit unions, such as MSGCU, are owned by their members and offer financial solutions for the members’ benefit. With a not-for-profit credit union like MSGCU, fees and rates are generally lower. Plus, giving back to the community is in our DNA. For example, MSGCU gave more than $300,000 back to our local communities last year alone through scholarships, sponsorships, grants, donations, and other efforts. Banks, including online banks, are for-profit businesses that sell financial products to grow their business. Their profits go back to shareholders.
4. Put safeguards in place.
College is a great training ground for life skills, including financial independence. While mistakes are an important part of learning, built-in safety nets can help to protect your student and you. For example, MSGCU’s Achieve Student Debit Account was created specifically for 16- to 23-year-olds, and includes daily transaction and ATM withdrawal limits to help prevent overspending and guard against possible fraudulent activity targeting teens and young adults.
Adding alerts is also an easy and effective safeguard before accidentally overdrawing accounts or to prevent fraud. With a quick setup in the app, your student can set up notifications whenever their account hits a certain balance, when a transaction is at or below a certain amount, or even if someone logs in to their account.
It’s also important to consider legal safeguards to put in place before your student leaves for college such as a Power of Attorney and HIPAA Release. While a lawyer or online legal resources should advise you and your child with these important documents, know that MSGCU offers notary services in every branch for members. There’s no cost and no appointment needed to have legal documents notarized at MSGCU, but if you prefer to schedule an appointment, we can accommodate that, too.
5. Choose a full function financial account with parental access.
Financial accounts for teens and young adults should be fully functioning with safe, convenient 24/7 accessibility for both students and parents. MSGCU’s Achieve Student Debit Account features:
- Automatic spending safeguards that help keep spending in check
- 24/7 access with our highly rated mobile app
- Safely send money to friends/family
- Mobile-wallet friendly debit card
- Access to 30,000 free ATMs
- Security alerts to help stay protected against scammers
- Roll up the Change from every purchase for automatic saving habits
6. Remember to be flexible.
If your kid is over 18, it’s up to them as to how much access you have into their account.
Many young members choose to have their parent as joint on their account. This option gives you, the parent, almost full access to the account – including being able to deposit or withdraw money or set up alerts. This option also allows parents to link the account so it can be accessed under one single username in Online Banking or the Mobile App.
Other young members choose to give their parents view-only access. This option allows your student to customize which accounts you can see for a helpful second set of eyes, but there is no access the funds.
And other young members elect to do neither of these.
You can always transfer funds to you child safely and quickly with the Transfer to Another Member function within Online Banking or our Mobile App, no matter what level of access you have.
7. Prioritize privacy.
This one’s easy: encourage your student to check their balance regularly. The Quick Deposit feature on the MSGCU Mobile App makes this even easier – once enabled, you don’t even need to log in. Looking at your balance – and account activity – often helps spot irregular activity coming from identity theft. The earlier it's caught, the better.
Also, remind your student to never (ever!) share confidential information such as passwords or their debit card PIN. Follow MSGCU on social media for more security tips.
8. Think forward.
Earning a 4-year college degree includes taking about 40 classes, however we know not all learning happens academically. Taking steps to ensure your student has a safer, smarter money start in college will serve them well beyond graduation day.
MSGCU’s Achieve Student Debit Account takes care of many of the important details and strengthens a relationship with a member-driven financial partner your graduate can look to for future vehicle loans, home loans, investment options, savings ideas, and even retirement planning.
To learn more about money solutions for young people, visit a local branch or call (866) 674-2848.
Category: Finance
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