D2, our third and last is heading off to college this fall. For her two older sibs, we got them set up with a checking account and then they took a credit or debit card. S who was the last to grad college in 2014 used it rarely.
I’m really hesitating to get D2 a checking account - I rarely use my own aside from some bills!!! She will have a debit and credit card with her and we’ll give her some cash. Her sister happens to live in the town she will be living in so on the rare occasion, she could bail her out if need be.
What do you think? Try freshman year without? Are you automatically setting up a checking or doing without this go around???
Our kids rarely used their checkbooks but when they needed it, they needed it with them. They used them for paying for housing and I think utility bills - at least the first one. For the norm they move money via google wallet but the checks were needed.
It has been very helpful for us…I can see her account and move money into it as needed, when they venmo each other money (to chip in for a pizza, etc) they need a checking account to link it to (the kids seem to venmo a lot), and if they have a job, they need a a bank account to have their checks direct deposited (pretty much required by any employer these days…paper paychecks are a thing of the past)
Are you asking whether she needs a physical paper checkbook, or whether she needs her own account? IMO, she should have her own account that her debit card accesses, rather than using a debit card on your account, or a credit card billed to you. She has got to learn how to budget, that if she picks up the check for pizza every week in September and buys a new outfit for every party she’ll be out of money before Thanksgiving. Unless she has more money saved than mine did.
My kids had student checking accounts linked to mine, so that if needed I could send them money in an instant, but that never happened without lots of pre-coordination. I could also look to see how they were spending their money, not that anyone but a neurotic helicopter mom would do such a thing.
DD writes few checks, and pays her rent by money order, so the actual paper checks may not be necessary.
My son has had a checking account since high school. We ordered him checks when he went to college. It’s been a year and he hasn’t needed one yet. He’s planning to move off campus juniir year and it’s possible more need will arise then.
That said I write a check to my daughter’s piano teacher every month and it is frequently the only check I write in a month. So who knows?
Do they need a bank account of some type? Absolutely! But if you are asking specifically a checking account…
Both of my kids have had savings accounts for a while. Going off to college my D opened a checking account. So far I think she’s written 1 check (in 2 years). Just opened a checking for my S—time will tell if he needs one.
What’s the harm in opening an account? If they need to write a check, they can. If they never write a check, no harm. But if they don’t have a checking account and do need to write a check—then they have a problem.
My kids almost always use debit/credit cards but each has had a few instances over their college years where they needed to write a check (ex. for a field trip, dues to an honor society etc.) and I was glad they could write one out. If her sister lives in town perhaps she step in when a physical check is requested.
My D who is still in college has a checking account and she puts her money from summer and any part-time school year earnings into her checking account and uses that for her spending money during the year so I kind of like that set-up.
Also for we set up their checking accounts at whatever bank that has an ATM on campus – both kids said this was very helpful.
My D has had a checking account since she was 16, but has never had checks. Her bank does not give debit cards tied to a savings account, she needed a checking account in order to use a debit card.
OTOH, I am an assistant manager at an apartment complex. We do not take cash or credit card payments for rent. We only accept checks or money orders. So, when your student is ready to get their own apartment, it will be important for them to know how their complex wants rent paid and to know how to write a check for that if that is the way that is expected.
I agree with Jym- is it really that big of a deal to open a checking account? I’d be shocked if you couldn’t pay with a card/electronic transfer at 98% of places. However, sometimes things like rent still require checks. I’ve noticed this is especially the case if you rent from a private landlord or someone with a small apt complex as opposed to a large company.
It’s still a good idea to get a checking account. You need a checking account to get direct deposit don’t you? If she gets a job, she’ll want that direct deposit. In our area, you can get an ATM for savings accounts but to get a debit card, you need a checking account. D has had to write a couple checks in college as well believe it or not.
On top of all that, it’s just a good thing for kids to split up their money. Both my kids only keep a small amount in checking and that is for spending. The rest sits in savings. When D needs to make a big purchase (like books) she transfers. When she’s running low in checking, she transfers. It makes using more money a conscience choice as opposed to be shocked at when the statement comes in.
Definitely need a checking acct for direct deposits from work and for linking to PayPal, Venmo, or whatever other payment service. However, checks are optional - can pay rent, utilities or whatever else through online bill pay, which most banks offer for free now. And if not via bill pay, most vendors (maybe not private landlords) accept direct ACH or echeck as well, which is also free.
Also, if they open a Schwab or Fidelity Cash Mgmt Account, it’s free, with free checks, ATM withdrawals anywhere in the country for free, free debit card, and free bill pay. Just another option out there that is zero cost.
Our D has a checking account with Chase Bank. It was a high school checking account (linked to our accounts) but we just converted it to a college checking account. She has a part time job and her paycheck is direct deposited into the account. She also has a debit card. We talked to the bank representative when we converted it to a college checking account and she agreed that hardly any college students use paper checks any more. She can go on line to use the Bill Pay feature if she needs to request that a paper check be sent to someone. But so many things can be done on line now. I just learned that I can use my smart phone to deposit any check! Just log onto the bank’s app and you basically take a picture of the front and back of the check and presto it gets deposited into the account of your choice. D was surprised to find out that since our accounts are still linked, mom & dad can go on line and look at what she’s using her debit card for. She was not thrilled about that. Not that she’s using it for anything nefarious, but she doesn’t like being second guessed on how much she spent at Forever 21, for example.
As I mentioned in the OP post, this isn’t our first time around the block and YES, it’s the paper check I was wondering about. I’ll have to check w/H - he’s the one who went with her to set up a debit card (in her name, her account) so perhaps this checkbook thing is already in the works - and he just didn’t tell me or finish it off (wouldn’t be the first time!)
I have no worries about her overspending - it’s not who she is - but you bring up a few good points about club fees, etc. - I’ve never heard of Venmo - neither has my 23 or 26 year old!
My son had two checking accounts when he went off to college. One was our credit union at home and one was at the most popular bank in the city/state where his school was. His on campus job required a checking account to get direct deposit and getting money from their ATM’s was free of charge. We used his credit union account to transfer money from our accounts to his CU account when he needed it extra cash. He probably has never written a check from either account, except once to transfer money from one account to another. He did learn a valuable lesson from that - you cannot make a deposit using the phone app with a check you have written to yourself from another account in your name. Caused a lot of items to bounce and me a lot of money (I felt sorry for him, so.)
I’ve done this plenty of times. I write a check from bank A to myself and use the phone app to deposit to my account in Credit Union B. Never had a problem.
We plan to have D open a checking account at school. But she won’t be getting any paper checks. In the off chance she would ever need one, she could always get a bank check, or a money order.
DS has a checking account and he just got 12 counter checks at the bank printed for free. As few checks as he writes, it seemed silly to get a box of 200 (not free). He can always get more from the bank if he runs out.
We did add me on as a co-owner on the account in case I need access in an emergency but I don’t have internet access or any other routine access.
Also, chose a bank that is present both at his school and in my town so direct access is possible for both of us.