College graduation is almost here. What do I need to know about things like insurance, residency?

Parent Cafe
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You all have been so helpful over the years with advice about high school, college hunting, and early college years. My child made it through 4 years and is graduating in a few weeks! I could not be more proud, especially after all the trouble she had getting here.

I have no idea how to advise her, or what I need to do to help her separate from us, logistically, about day-to-day things. For example, car insurance. She’s been on our plan. She went to an OOS college but was still legally a resident of Maine, so kept her ME drivers license, registered her car here, etc.

She has a job at the Cornell U. entomology lab lined up for right after graduation, so she’ll be moving to upstate New York. What does she need to do about her car? Can things remain as they are, or does she need to take this over?

Presumably there will be some health insurance offered though the job when her current student health insurance runs out in August. What else does she need to plan for?

Thanks for any thoughts you might have on this!

Stacey

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  1. Car Insurance…yes, when she is living on her own she should take over her own car insurance if she owns the car. If you own the car, you should sell/gift it to her and have her register itin her name.
  2. Cell phone
  3. Keep her on your insurance as long as you can (to age 26) f it is free for you to do so. She will probably have to pay.
  4. She may want to get a local bank
  5. Renters insurance
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  1. She should change her car registration and driver’s license address – perhaps wait 6 months or so to see how well she takes up the new job, finds a new address, etc. She will need proof of insurance, whether it’s still on the family policy or separate. I’d probably keep it on the family policy for now – a transition period.

  2. She should have a local bank or (I prefer) credit union account for payroll deposits, ATM, possibly Visa card and short term loans. (I’ve never had a bank account! Always credit unions, starting when I was in graduate school.) She should be sure to understand importance of keeping a good credit rating.

  3. Re cellphone, my son has his own account. My daughter is still on our plan, and we’re paying for it. That will change now that she has good, steady job for he past year+.

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Thank you! Should she transfer her car registration and license to New York, do you think?

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We are hitting all this now (and congrats on getting one through college… feels great doesn’t it!) She’s in the interview stage now so no idea yet where she would land.

If your D has a full-time job in New York, I would think she’d want to register her car there and get local insurance in her name. Hopefully her work health insurance kicks in pretty quick but if it doesn’t, maybe look into major medical to cover any gaps. We plan on keeping D on our plan unless she lands a job with great medical (but being a journalist, we aren’t sure that will happen… doesn’t cost us to keep her in our plan since we have younger kids.) We don’t know if she will need a car but she doesn’t have one now and we only cover her during visits.

If she doesn’t already have things like an official copy of her birth certificate, a passport, her social security card… time to hand those over. I ordered an extra copy of the birth certificate that I keep with us along with her shot record. Sometimes it’s just handy to have a copy ready.

She probably already has a charge card in her name but if not, that’s another good thing to set-up before she’s on her own.

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Thank you! She’s so thrilled about the lab job. She wants to go to Cornell for her PhD, and is hoping that working in the lab there will help get in later. The job is only confirmed for 6 months, but I think she feels fairly certain she can continue after that time frame. We’ll see. I hate having her SO far away but it’s exactly what she wants to do, and she’s so fortunate to have a job - low-paying as it is- lined up in her field already.

She doesn’t have a charge card. You mean a true charge card, right? Not a credit card? She has neither. She is NOT at all good with money, and has been afraid to get a credit card. I personally think a charge card would be a good interim step… only charging what she knows she can pay back each month in full. I assume you mean that she should have a card in order to build credit, right (because otherwise her debit card works for charge purposes…). But I was under the impression that charge cards didn’t really help build credit…???

Congrats on your kid, too! Incredible how fast these last 4 years went, huh?

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At minimum, I would open a credit union account in Ithaca. If Cornell will directly deposit her paychecks there, then she can be out of town and get access to her money using an ATM (certain ones are specific to the NCUA). That will give her ready cash. The account may also be something you can transfer money to from your own bank (either send her a check or do a bank to bank transfer). (We’ve done this in the past for our DD.)

A real-life credit card is less necessary, and maybe takes some adjustment (and restraint). What you refer to as a charge card, but with a line of credit with a limit. Having a credit card is good as an emergency, or for purchases of things like tickets for travel. but also something she should always endeavor to pay off each month (as I do with my Visa and AMEX cards, and have for decades – though it’s always possible with the Visa credit card to carry over the balance up to a limit, and pay interest). In effect, I use my AMEX card as a charge card (pay balance off each month) an my Visa as a credit card (USUALLY pay balance off each month, but i could carry a debt up to some limit).

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mackinaw, that’s exactly what I do with my Amex and other CCs. I never carry a balance. I’m encouraging her to do the same.

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If this is truly a temporary job, she might be able to stay on your auto insurance policy, and keep her current state residence for her driver’s license. Ask your car insurer, and have her check about the rules in NYS.

CFCU Community Credit Union has a branch in the Cornell right in the middle of campus, as well as others scattered around town. The website is mycfcu.com. Back when I joined in the last century, it was called Cornell University Federal Credit Union :). The field of membership now is a lot larger, but she still should verify that her position will qualify her to join. There are a number of other credit unions in Ithaca to check out as well.

But to be perfectly honest, if she has a debit card for whenever she wants cash, there’s no real rush in setting up a new bank or credit union account. Her paychecks probably can be direct deposited anywhere in the nation.

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I wouldn’t change car registration for a 6 month position. Friend of older d had a car for his junior/senior year at Cornell undergrad and parents thought might be easier to deal with car inspection upstate and all of that. Turned out that the inspection requirements because of harsher upstate conditions as compared to home here on Long Island turned into car needing work done to satisfy those requirements and ended up being a major headache. When younger d had one of our cars in Rochester senior year and older d had another car first up in MA for post-bac year applying to grad school and then in Philly for 2 years in grad school and then another 18 months for fellowship position/adjunct position, we did not change registration but we did notify insurance company. Even though the car in Philly was our oldest car, insurance went up because of higher instances of car theft.

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Oh my gosh, I remember your daughter! Has it really been 4 years?? And congrats on the entomology lab position!

She needs to figure out where to vote this fall, too. :slight_smile:

My D moved to another state last fall for grad school. She did register her car there and I helped her get car and rental insurance through Esurance. No claims so far, but it is online and easy to set up. So if you decide to go that route, something to look into.

Finding a 6 month apartment lease might be hard, too.

Don’t presume she will have health insurance — not always the case! Make sure you understand with your insurer what happens if she leaves your insurance for her job insurance if that job terminates and she has to come back to yours. They should let her given her age, but the timing can be tricky, and you don’t want her to have a gap.

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A charge card IS a credit card.

I would suggest she open bank accounts in Ithaca at perhaps a credit union. It is likely that Cornell will require direct deposit. This would be easy…maybe they have credit union their employees use.

With the credit union account, she can apply for a credit card…usually this is a Visa or Master Card.

She will have a savings account at least for deposit, and online banking. I don’t think most kids use checking accounts these days… But she can get that too.

The credit union will also likely issue her a debit card…to use at ATM machines.

What has she been doing about money while in college? Did she work, and have a paycheck? Does she currently have a bank account? If she does, and it’s with a national bank or bank in that area, she can continue to use that.

Car insurance…we had this issue. We wanted to let our kid use one of our cars OOS…and our insurance was very clear…that if we didn’t live OOS, and the car was garaged there for most of the year, they would drop our coverage. They said it was clear we weren’t using the car…and they were right.

We transferred the title to the kid who got his own insurance locally. He also got renters insurance for his belongings…and that was considered a “bundle” so he did save some money.

Cell…one of our kids is still on our plan…and really I wish the other one was as well because it’s cheaper…and he could have paid us.

Health insurance. Check your plan at work for costs. If this is your last kiddo and dropping her will make you a two person instead of a family plan, it might be cheaper for her to have her own insurance. OTOH, it sounds like her position is NOT a permanent one…and that being the case, she might not have health insurance benefits offered to her. So…check first…

A debit card is NOT a charge card. A debit card immediately withdraws the money from the account to which it is attached. A charge (credit) card doesn’t do this. I don’t think you build credit by using a debit card!

Where will she live?

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My D moved to the next state over (an hour and a half drive, so not very far). We have kept her on our health insurance just because it’s cheaper and she’ll have to go off at 26 anyway. Her car is still registered in our name (we own it, so it’s ours and she’s using it) and we pay the insurance - again, way cheaper and less hassle to keep it as is. She pays her rent, cell phone, utilities, and renter’s insurance. She got her own credit card, which she pays off every month - the mantra of never paying interest was drilled into her.

My S is in the process of making the same move now - he’ll sign up for the utilities associated with his apartment, which has a year lease, but we’ll keep him on health and auto insurance because it’s easier and cheaper. He also has a fresh credit card - yes, it does help to establish credit, as does signing a lease (at least with a large property that reports such things) and paying rent on time.

Your D’s most important next step is figuring out where to live. IMO, any rental intended for less than two years does not warrant changing residency and all the address change hassle, only to redo it all in a year. For a six month job, does it make sense to sign a 12 month lease? Maybe she’ll sublet or move in with a roommate? In that case, it makes no sense to switch everything over to a temporary address.

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I don’t know what’s the big benefit of having a credit union account and I also don’t know why it needs to be a local bank. Both of my kids still have accounts at my bank, which is a global bank. They get all the perks I get(as a private banking client). When my kids were going to school in Ithaca, the bank didn’t have a branch in Ithaca, but they still had direct deposit from their jobs and they were able to withdraw money from any ATM machine. They could also make deposits direct from their smart phone now. There is really no need to be near a physical bank. Most kids don’t carry money any more. They use their credit cards to buy everything.
You should check out the cost of your kid on and off your insurance. Cornell has really good health insurance coverage. The deductible and co-pay are very low. They also covered my kid when she was home for winter and summer breaks.
If your kid has a 6 month gig, she should look for a sublet, especially over the summer. My older daughter did sublet for one year and she was able to save 30% of rent. The only down side was she had to move midyear. If your D has a car she could get cheaper rent a bit further out (like right on the lake).
Both of my kids are still on my cell phone plan because it is cheaper and our plan is grandfathered.

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^^Agreed. Even though she hopes to stay at Cornell beyond the 6 months, right now, that’s the commitment she has. I would call my insurance company and explain the situation and ask if you can just switch the address for 6 months. We sent a car back east D2s’s last year of college and D3 took it the following year. It’s now been east for 3.5 years and, every time my D moves or needs to leave it somewhere for a summer, etc. I just call my insurance and update the address and potentially pay a slightly different premium based on where the car is located. If your D’s position becomes permanent, then I would make the change, apply for a NY license, etc.

I believe that establishing credit in one’s name is important and I would speak with my D about whether she thinks she can handle the responsibility/temptation. If so, I would encourage her to apply for one. Perhaps she can intentionally request one with a low limit in case she believes she may be too tempted.

And I’m assuming she periodically needs cash so setting up an account with a bank that has an ATM convenient for your daughter or having her set up an account at a bank that reimburses ATM fees (i.e. Schwab) makes sense.

I would also ask your D if she has health coverage through her job and, if so, if she knows any of the details (like how much she’ll pay out of pocket to access care and whether she’ll get any benefit from denying the coverage). The two of you can evaluate whether she’s better off with the coverage (hopefully) offered by Cornell vs. through you or your husband’s company.

My daughter is graduating from Cornell this spring and has had a wonderful experience. I hope your D does too – I know she’s going for work but she’s entering a great community!

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People use the terms credit cards and charge cards interchangeably, but they are really different. Charge cards are to be paid in full every month. Some AmEx cards are charge cards. There is no agreement to extend credit and to pay back a little at a time. Old gas/oil cards were charge cards, the old Diner’s Club, etc. Also some people refer to store cards that can only be used for one merchant (Macy’s, Target) that way, but most of those do now allow payment over time, i.e., extend credit.

Anyway, what she probably wants is a Visa or Mastercard. Discover still issues cards to students. My daughter just got one because our credit union would not issue her a Visa based on her job that won’t start until June. I could apply as co-owner but that’s not what she wanted.

You can open a savings account at a credit union but you can only take 6 withdrawals a month (that’s a fed regulation). If your daughter is going to use it as a checking account she should get a checking account.

My daughter is also graduating and has a job. She’ll get insurance through her new employer, she’s buying a car so will get car insurance, she has a bank account at our credit union but it is OOS so she’ll probably open up a local one although she’s survived 4 years of college banking at ATMs and writing her one check a month for rent. She might get a temporary apartment for just a few months because her boyfriend wants to move with her and then they’d want to pick an apartment close to both jobs.

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@staceyneil

What is your daughter doing for banking NOW as a college student? There is NO reason to change that.

Her job is a six month job. Until this becomes a permanent job, I wouldn’t change anything.

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If here job is only for 6 months, keep her on your health insurance. You will probably have better coverage than what they are giving her for a temporary job. In addition, you do not want there to be a gap/lapse in her insurance should an emergency arise. It does not make sense to take her off, if you may only have to put her back on.

I remember when my D took a job and she was old enough to be on my plan. I had a better plan she she had (she still misses my plan). It did not take anything from me to keep her on my plan until she aged out.

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Thank you, that is really helpful!

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Thank you so much for all of your responses. Sorry it took me a while to see them: CC is no longer sending me email notifications when there are replies, for some reason!

For what it’s worth, she s going to be at Cornell’s Ag Station in Geneva, not in Ithaca. She is having a really hard time finding housing; it’s a pretty small place. She’s just been looking on Craigslist at this point, and landlords want to meet her, which is really difficult because she’s in Massachusetts and swamped with papers etc. Does anyone know where she might look to find sublets? Her partner will be joining her in August, too, so they are hoping to find their own apartment rather than a roommate situation.

Again, thanks all for your time and replies!