On CNN's Open House show last Sat. they discussed credit cards on campus and gave this
advice:

WILLIS: Well, for many, college is not only the first time they'll live away from home, but also the first time they'll have to deal with money. It can be a big wakeup call for some who have never managed their own finances before.

Here to help, Janet Bodnar, deputy editor of "Kiplinger's Personal Finance," from Washington.

Welcome. Good to see you.

JANET BODNAR, DEPUTY EDITOR, "KIPLINGER'S PERSONAL FINANCE": Oh, thanks very much, Gerri.

WILLIS: All right. You say that when you send your kids to college, you really need to think about what they're going to come -- what they're going to be spending and actually come up with estimates.

Is that possible?

BODNAR: Sure. I think, as much as you can do ahead of time before you get there, the better off you are. So what that means is, looking at how much your kids are spending now on entertainment, food away from home, that sort of thing. Have them keep track with little Post-its. And if they're not doing it now, send them off to college with little Post-its and have them stick them on their desks.

WILLIS: Beer and pizza. Beer and pizza. Beer and Pizza. OK.

BODNAR: Exactly, which is the biggest drain on your money.

WILLIS: All right.

Some teens have a bank account before they go off to school, but some don't. So, when you're out there trying to figure out the right institution, how do you pick the right one, and then who manages the bank account?

BODNAR: Well, a couple things.

First of all, you want to look for one that's going to give the lowest fees. So you don't want a minimum balance, you don't want to have to pay for transactions, that sort of thing.

But one thing that parents may not think about, you want an institution that has got ATMs close to your child's dorm. The kids will not go out of their way to use the free ATM. They are going to go to the closest one. And if it costs them $2 a pop, they don't care.

So that's really very important. And...

WILLIS: That's true about adults too, you know.

BODNAR: Exactly. Convenience really counts. But parents tell me that they don't -- this is something they never thought about, and the ATMs were just too far away from where the kids were.

And the kids will be managing the account. They should be managing the account. That's part of their college education.

WILLIS: All right.

Well, you know, here's one of my pet peeves with college kids. Orientation day, they go. There are a million credit card companies pitching them, giving away free T-shirts, free beers, you name it.

These kids don't need credit cards necessarily, right?

BODNAR: They do not. Just say no. And I think parents should tell their kids this.

Believe it or not, your kids will listen to you. You don't believe it, but they will. And especially freshmen do not need credit cards.

A checking account with a debit card is fine as far as managing their money is concerned. And they've got plenty of time.

You know, once their juniors or seniors, even, and they've managed their money for two, three, four years, and you know they're not going to overdraw their account, they're living off campus, they're paying the rent on time, then they still have plenty of time to apply for a credit card before they graduate.

WILLIS: Janet, you are tough love, let me tell you.

BODNAR: I am. Yes. I've got three kids, too.

WILLIS: Let's go to textbooks and decorating the dorm.

BODNAR: Right.

WILLIS: You know, you can spend a lot of money on those. How do you save?

BODNAR: I think on this, to go to cut rate textbook sites. A lot of schools do this on their own. They have book exchanges online that the kids can go to. Or you can buy used books on Amazon, (INAUDIBLE). There are other textbook sites on the Web that specialize in texts.

Just make sure that you're buying the proper textbook with the right ISBN number for the course.

WILLIS: All right. I didn't know that.

BODNAR: Yes.

WILLIS: What about decorating the dorm room?

BODNAR: Call your roommate first and find out what the roommate is bringing. If the roommate is bringing the little mini refrigerator, then you can bring the little mini microwave.

There may not be room in the room for much else. So kind of get things, you know, worked out ahead of time. And try not to go overboard. Again, whatever you can shop for before you get there is a good idea because you don't necessarily want to be, you know, all descending on the same store at the same time...

WILLIS: It makes sense.

BODNAR: ... to pick up an extra pair of sheets.

WILLIS: Janet, good advice. Thank you so much for helping us out today.

BODNAR: Oh, my pleasure, Gerri.

.

Bonnie
http://pupart.1hwy.com/