subject: Bank Of America Drops College Account [print this page] College Student Money Tips College Student Money Tips
Parents better teach their college bound kids how to do their wisely. Bank of America has ended its' free Campus Edge account which was designed for college students. The new account option for college students at Bank of America requires use of bank automation machines like ATMs and online banking services. This college account has the option of paying $8.95 per month if the student or parent chooses to use a teller for routine transactions.
Banking Tips For Parents Of College Kids
Plastic is essential. Make sure your college bound child knows how to use an ATM debit card and knows how to track spending with online banking. It is important to teach your college bound kids the consequences of mismanaging their bank account by showing them the penalty fees associated with credit card cash advances, late payments and bank overdrafts. You need to be aware that many college campuses are wired now so that the student identification card serves many purposes such as a key to access dorms and other campus buildings, a library and meal card. Some Identification cards may also double as a debit card for purchases at the campus bookstore and can also be used for activating the laundry machines in dormitories.
We recommend that you link bank accounts between parents and students to make it easier to transfer funds as needed by your college bound student and allow for transparency of purchases made. Some college accounts at banks have limits on the number of paper checks that can be written per month without a fee.
Make sure to prevent the habit of students taking frequent cash withdrawals of small amounts of $20 or less. Instead, teach college bound kids to plan ahead so that they have enough money for an entire week. This helps them develop their organization skills and lowers risk of being short on cash and having to use another bank's ATM to get cash (meaning more fees).
The new legislation from the Obama Administration protects students from overspending. Debit card and ATM transactions that exceed their balance will be rejected unless they have set up a link to another account (e.g., a savings account) or pay for overdraft protection.
It is important, too, that parents and student communicate to establish rules for when the student needs money. Given that overdraft fees come at a high cost, parents and students should talk about what happens if the student runs out of money.
