Welcome! It's back to school time. College sessions are about to begin. If you're sending your child to school for freshman year or beyond, we have some tips on managing money. You have a role as well - whether your student is still at home or has already moved onto campus.
Your kids can learn fiscal responsibility that will last them a lifetime, and remember we're here to help you stay On Course!
-Jennifer Lane, CFP |
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Money Smart on Campus
Whether you have a freshman or a senior, it's never too late to help your student learn to spend responsibly. |
Credit (and Debit) Cards - If your student is new to cards, then begin with a debit card, which will easily limit any spending sprees.
- If your student has been using a debit card successfully in high school, you can feel more secure letting him or her have a credit card.
- Do not co-sign for the credit card. College is a great time to build a strong credit rating. Check out CreditCards.com for a student card that doesn't need a co-signer.
- Pay off the credit balance weekly - there is no need to carry a balance. Paying weekly will help drive home the message that credit is for cash flow, not long-term borrowing. And, it will help keep the balance from getting away from your student. If he or she misses a week -- no worries, pay the balance the following week.
Banking - Both you and your student should open online bank accounts at the same institution. That makes it easy and fast to transfer money.
- Both of you should check the balance every day! Go online - or, if you have a smart phone, you can use an app to check.
Identity Theft - Stress that passwords and IDs are private and should not be shared with anyone.
- Check your student's credit at AnnualCreditReport.com to be sure there aren't any problems.
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Q&A
Q: Our first grandchild has arrived! We are thinking about beginning a 529 plan for him. How can we learn more about what's involved?
-- Clive, Brockton |
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A: Clive, congratulations! What a great way to help both your grandchild and his parents. Go to SavingForCollege.com to learn all about 529 plans. The site has detailed information for grandparents. Providers, such as Vanguard, offer aggressive, moderate, and conservative options. Each option provides a different asset allocation that adjusts as your child gets older. The aggressive option keeps more in stocks than the moderate and conservative tracks. Even though the time frame is a long one, consider that the volatility of the moderate and conservative tracks may be easier to stomach when the stock market gets wild. |
What's New
- Jennifer's Compass. Jennifer recently spoke with NECN about whether now is a good time to refinance. Click here to watch the segment on her blog.
- We now have a Facebook page. Visit www.facebook.com/AskJennifer and like us!
- Jennifer appears on NECN every other Monday morning at 9:30 am in addition to her Tuesday 5:00 pm and 6:30 pm appearances.
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