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What Students Should Not Take To College

In a few week’s Malik’s bags will be packed as he prepares for his return trip back to Bowie State University to begin his Junior year. While he was home we had a chance to talk about a lot of things including his father’s health and how to remain safe on campus and on the road.

This summer he again worked at Amazon and was able to make and save money for those “extradentials” .  As parents of young adults it is very important to discuss their finances before they head back to campus.

You may remember that I previously posted this article by Michelle Singletary which helps parents “have the financial talk”  with their students, but I wanted to repost it as a reminder.college students and finances

A financial suitcase for freshmen

By Michelle Singletary, Columbian business columnist

In a week or two, thousands of young adults will be heading to college for the first time and they’ll be faced with a lot of financial choices.  I wonder how prepared they will be.  It’s not enough to hope they will be ready to handle their money. As the good book says, “faith without works is dead.” Good money managers aren’t born; they’re trained.

So, as your college freshman is packing up, there’s one piece of luggage that needs to have all the right stuff: the financial suitcase. Here’s what should be inside:

college student and money

The right debit card. Before heading off to school, make sure your child has a debit card that will work well at his or her college location. That might mean opening an account with a different bank or credit union that has ATMs on or near campus to avoid an out-of-network fee. Double-check that you can easily and quickly transfer money into the account without incurring fees. For this reason, you may also want to get an account at the same financial institution.

Mobile bank alerts. If your freshman hasn’t done this already, he or she should set up alerts connected to the debit card. Alerts can be customized to report deposits, withdrawals and bill-due dates. Cardholders can also be notified when the account balance is getting low, which in turn will help avoid overdraft charges and other fees. Just be mindful of alerts received as text messages, which may incur fees from a mobile provider.

Box of envelopes: Budgeting may not be easy at first. If you know your child is challenged in this department, try the envelope money-management system. Envelopes should be labeled the following way for the four major spending categories: eating out, clothes, entertainment and transportation. Every week, two weeks or month, depending on how your child receives income or spending money, put budgeted cash for each category into the envelopes. When the money is gone from one, there’s no more spending on that category.

Commitment to save and not just spend. Yes, even students on a tight budget should save. If your student is getting a stipend or spending money from you or a job, encourage him or her to start the habit of saving something — anything — from the funds they receive not allocated for tuition, room, board and books. Suggest a “Life Happens” fund, which is different from an emergency fund. Money in this account can be used for pizza, parties, clothes, spring-break trips, concerts, etc. But when the money is taken out, your student should have a plan to replenish it.

Here are some things that students should not take to college

do not use credit cards

Credit card: I know you’ve heard that it’s important for your child to establish credit. But it’s not time for that yet. As your student gets closer to graduation and needs to build credit to get an apartment or car loan, he or she can open a credit card account. But for now, as a freshman, consider credit an unnecessary luxury. Besides, debit cards with either the MasterCard or Visa logo can be used for almost any purchase. My daughter is a junior in college and she hasn’t had a need for a credit card.

Expectation to spend excess student-loan money: Talk to your child about not accepting a student-loan refund, which is money in excess of the cost of attendance. If there is money left over, he or she may get a refund check. This is not free money. It’s a loan with interest that must be paid back.

Entitlement mentality: Leave at home the attitude of having to experience everything. Going on that spring-break trip may not be feasible, especially if your child has student loans.

As your freshman is going over the checklist of things for college, make sure his or her financial suitcase is stuffed with tools and strategies that will help to avoid any money missteps.  

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Have you had “the financial talk” with your college student?


Have you “had the talk” with your college freshmen?

Malik’s bags are all packed and he is ready for his return trip back to Bowie State University to start his Sophomore year. While he was home we had a chance to talk about a lot of things including his father’s cancer treatments and how to remain safe on campus.

This summer he also worked at Amazon and was able to make and save a few dollars for those “extradentials” so it was very important that we discussed his finances.  I recently read this article by Michelle Singletary which helps parents “have the talk” with their college freshmen. college students and finances

A financial suitcase for freshmen

By Michelle Singletary, Columbian business columnist

 

In a week or two, thousands of young adults will be heading to college for the first time and they’ll be faced with a lot of financial choices.  I wonder how prepared they will be.  It’s not enough to hope they will be ready to handle their money. As the good book says, “faith without works is dead.” Good money managers aren’t born; they’re trained.

So, as your college freshman is packing up, there’s one piece of luggage that needs to have all the right stuff: the financial suitcase. Here’s what should be inside:

college student and money

The right debit card. Before heading off to school, make sure your child has a debit card that will work well at his or her college location. That might mean opening an account with a different bank or credit union that has ATMs on or near campus to avoid an out-of-network fee. Double-check that you can easily and quickly transfer money into the account without incurring fees. For this reason, you may also want to get an account at the same financial institution.

Mobile bank alerts. If your freshman hasn’t done this already, he or she should set up alerts connected to the debit card. Alerts can be customized to report deposits, withdrawals and bill-due dates. Cardholders can also be notified when the account balance is getting low, which in turn will help avoid overdraft charges and other fees. Just be mindful of alerts received as text messages, which may incur fees from a mobile provider.

Box of envelopes: Budgeting may not be easy at first. If you know your child is challenged in this department, try the envelope money-management system. Envelopes should be labeled the following way for the four major spending categories: eating out, clothes, entertainment and transportation. Every week, two weeks or month, depending on how your child receives income or spending money, put budgeted cash for each category into the envelopes. When the money is gone from one, there’s no more spending on that category.

Commitment to save and not just spend. Yes, even students on a tight budget should save. If your student is getting a stipend or spending money from you or a job, encourage him or her to start the habit of saving something — anything — from the funds they receive not allocated for tuition, room, board and books. Suggest a “Life Happens” fund, which is different from an emergency fund. Money in this account can be used for pizza, parties, clothes, spring-break trips, concerts, etc. But when the money is taken out, your student should have a plan to replenish it.

Here are some things that students should not take to college:

no credit cards

Credit card: I know you’ve heard that it’s important for your child to establish credit. But it’s not time for that yet. As your student gets closer to graduation and needs to build credit to get an apartment or car loan, he or she can open a credit card account. But for now, as a freshman, consider credit an unnecessary luxury. Besides, debit cards with either the MasterCard or Visa logo can be used for almost any purchase. My daughter is a junior in college and she hasn’t had a need for a credit card.

Expectation to spend excess student-loan money: Talk to your child about not accepting a student-loan refund, which is money in excess of the cost of attendance. If there is money left over, he or she may get a refund check. This is not free money. It’s a loan with interest that must be paid back.

Entitlement mentality: Leave at home the attitude of having to experience everything. Going on that spring-break trip may not be feasible, especially if your child has student loans.

As your freshman is going over the checklist of things for college, make sure his or her financial suitcase is stuffed with tools and strategies that will help to avoid any money missteps.  

Chime in: Did you have “the financial talk” with your college student?


12 Tips to Avoid Fraud – ‘Tis the Season to Be Cautious

MONEY MONDAY Hello friends and Welcome to Money Monday

Remember last month when I told you that hubby couldn’t buy me a gift for my birthday? Well after checking his bank statement a few days earlier, he realized that there had been some fraudulent charges made against his account. Luckily, they weren’t excessive, but after contacting the bank his debit card was immediately suspended, oh by the way, there’s a charge for a replacement, which I think is unfair but that’s another story for another Money Monday.

Anywho, I’m glad that he had finally heeded my warning in making sure to check his statements as well as any credit card or medical bills that were received in the mail. There are so many ways for scammers to get you and it doesn’t just happen during the busy holiday season.

Scammers and fraudsters are ever vigilant, therefore, as wise consumers we must be the same, so here is a list of 12 tips to help you avoid fraud and keep the scammers at bay! fraud stoppers

 

  1. Install a lockable mailbox to reduce mail theft.
  2. Limit the number of credit cards you have.

  3. Reconcile your check and credit card statements as soon as possible, and immediately challenge any purchases that you did not make.

  1. Scrutinize your utility and subscription bills to make sure the charges are yours.

  1. Keep a list of all your credit and bank accounts in a secure place so you can quickly call the issuers to inform them about missing or stolen cards. Or make a copy front and back of your cards with the numbers to customer service and fraud departments.

  1. Do not toss pre-approved credit offers in your trash or recycling bin without first tearing them into small pieces or shredding them. Dumpster divers can use these offers to order credit cards in your name and mail them to their address.  Always do the same with other sensitive information, such as credit card receipts and phone bills.

  1. Avoid credit repair scams. If you are tempted to contact a credit repair company for help, use considerable caution. The FTC and a number of state attorney generals have sued credit repair companies for false promises to remove bad information from credit reports. Only inaccurate information may be removed from your credit report; negative information that is accurate (such as a bankruptcy filing or a defaulted loan) will stay on your credit report as long as governing laws allow. running with money

  2. Never give any credit card, bank or Social Security information to anyone by telephone unless you can positively verify that the call is legitimate.
  3. Minimize exposure of your Social Security and credit card numbers. If the numbers are requested for check-cashing purposes, ask if the business has alternative options, such as a check-cashing card.
  4. Do not have your bank send your new checks to your home address. Tell the bank that you prefer to pick them up.
  5. Destroy all checks immediately after you close a checking account. Destroy or keep in a secure place any courtesy checks that your bank or credit card company sends to you.
  6. Do not allow your financial institution to print your Social Security Number on your personal checks. I remember when your social security numbers were not only printed on your checks but also on your driver’s license as well. Times sure have changed!

Have you ever been a victim of a scammer, whether online, via the telephone or mail, if so, then you know how difficult, time consuming and sometime costly it can be to get things back on track. AARP logo

Check www.aarp.org/fraudwatchnetwork if you are concerned about an organization that doesn’t sound legitimate and call 877-908-3360 which is the AARP Foundation Fraud Fighter Center.

Better Safe than Sorry!  

Stay Blessed ~ No Stress in 2014!

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New Year…More Money with The Delaware Financial Literacy Programs

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The New Year is an ideal opportunity to set and to create new money habits.  Whether your goal is saving, buying a home, or starting a business, there is a Money School class which can assist you. Check out The Money School class schedule and register for their free classes. You can even bring a friend!

What’s your financial goal for 2014? Take a picture, and send it to info@dfli.org. They will post your goal on the Money School’s Facebook page.

There’s no better time than today,

Social Media 101 Training 

Join us and learn how to create a savvy social media strategy. Social media experts will discuss creative e-mail marketing, maximizing video content, blogging tips, and media relations.

Guest Speakers:

  • Antionette Blake, Blogger, DeDivahDeals
  • Amy Cherry, WDEL
  • Carl Immediato, Talk Fusion
  • Randi Penfil, Constant Contact
  • Stacey Schiller, Stacey Link

When: Thursday, Jan. 30 ~ Time: 10:00am to 2:00pm
Where: Goodwill Center, 300 E. Lea Blvd. Wilmington

Lynnette Khalfani-Cox

CODE Conference 2014: Building a Brand  

Starting your own business? Need to jump start your current enterprise? Attend Delaware’s premiere event for the small-business community, the CODE Conference. Speak with exhibitors, network, and learn branding techniques from award winning financial-journalist, Lynnette Khalfani-Cox.

When: Saturday, March 1

Time: 8:30am to 1:00pm

Where: Chase Center on the Riverfront, Wilmington

Learn more and register

Want to exhibit at CODE?  E-mail Info@DFLI.ORG for details.

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