setting up accounts across country

jamimom
Fri, 31 Dec 2004 11:55:29 +0000

I watched my two boys with some amusement and some frustration as the two of them made about 5 trips (maybe 4) to open up an account for the 17 year old. Due to 9/11 there have been some strict rules set up in opening up an account. When they set up the account, they put some $400 dollars into an account that had a hefty monthly fee if the minimum balance fell short. The perk was unlimited checks but I doubt a 17 year old would write many checks anyways. So with some kids it is worth taking a look at the deals and halping them pick the one most suited.

The local banks will be out in full force with the deals but I always set up an account at the one with a branch righ on campus with an ATM right in the student center for safety and convenience issues even if it meant a bit more of a cost. Sometimes the best way to go is to set up one of these convenience accounts and keep the local account. The student can they budget himself by writing a check from the home account to the school account every month giving himself a weeks leeway for the check to clear. And if there is a true money crunch the ATM fee to access the away account from a local ATM is usually minimal. As long as it does not become a regular thing it is truly residual cost.

Many kids have problems contrulling and keeping account of expenses away. My niece and boys were great. My D did go over budget and still has some spending issues. This can be a learning experience for them. I know I had problems budgeting for many, many years, but most acutely the first year I had a “real” job. Many people never learn to manage money, so it is a lifetime gift to teach your kids the skills for budgeting and money management, though they may not immediately apply those basic tenets. At least they will have a sound process in mind should they choose to go that route.