~The good news is that our kids have tools that their parents never had, and it's making them savvier in watching for fees and tracking their balances. Between online banking and bill pay, mobile banking, and E-alerts, managing their money is easier and more efficient than ever. Here are some tips for parents:
1. Be a joint owner of your child's account. Children may resist having their parents' names on their checking account, but if you plan to transfer money into their account while they are away at school, you will at least need to have their account numbers.
2. Even if your name is not on your child's account, he or she can still designate you to receive an email alert when a balance dips below a given amount. Most bank checking accounts give students the option of adding a second email address for alerts -- which can come in handy when an emergency deposit is needed.
3. Let them manage their money. Don't fall into the trap of keeping track of your child's finances, or you may find yourself making regular deposits to keep your college graduate out of financial trouble later on. Every student should be allowed to manage their money to some degree. If your child is challenged on managing balances, then consider adding overdraft protection to their account.
4. Account register. The number one challenge for most students is maintaining their check register. Because young consumers use debit cards for everything from books to soda, many forget to write down every transaction or to keep their receipts. Students may benefit from free budget-managing websites that help them track what they spend.
5. Don't send them everything at once. Instead of making a single large deposit at the beginning of a semester, make smaller deposits at more frequent intervals to encourage responsible spending and give them experience in managing their money as the end of the month approaches.
With some planning, information and the right tools, your child can become financially independent; a skill that will last a lifetime.
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