28-Nov-13
Student debt has been big news lately. In Washington, DC, the biggest news has been the interest rate on student loans . However, when the amount of future second is that many students are in credit card debt graduation .
Class of 2013 graduates from an average of $ 3,000 in credit card debt , according to CNN. Three grand is not really that much money . But when you add the high interest charges , student loans and low- wage entry-level positions ( unemployed college or post- ) , the amount of credit card debt is out of control quickly .
Therefore, it may be wise to look at alternative ways college students to manage money - and their parents to send cash quickly in an emergency . Here are seven options to consider:
1 . Checking account. Many banks - both traditional and online - to provide low or no fees for students checking account. These accounts are usually equipped with a standard debit cards and ATM access . Students can not enter this type of debt and accounts, and parents can easily wire money or set up , so that they remain on student consumer card joint checking account.
2 . Prepaid cards . Although many come with higher fees , prepaid cards are becoming a more popular way for parents and students on matters of money management cooperation . Prepaid card created specifically for teenagers and young adults to their parents had a high level of student expenditure control , it is easy for parents to load more money onto the card. And a few cards up to today at a very low cost like those listed here.
3 . Secured credit card. If you would like for your child to start building a credit history of all the risks without high limit credit cards , secured credit card may do the trick. With a security card , the card holder can spend only up to the amount already deposited on the card. This prevents him or her to incur additional debt.
4 . Charge cards. Some card issuers are still available at a charge card, which is similar to a credit card, in addition to the balance must be paid in full each month . These cards have the benefits of a credit card and can be a good way for students to get emergency cash - as long as the student or parents can pay off the charge , the bill expires.
5. Alternatives checking account . Checking account alternatives everywhere these days , especially those suitable for students. First Capital 360 account is a good choice , because it gives students a way to track your spending and saving . In addition , the account allows parents to visit , or even send account activity notifications.
Another good choice is the Blue Jays , American Express and Wal-Mart . This alternative checking account , you can create a sub-account of the students. When necessary, parents can add money to your account , and you can set a daily spending limit for their children .
6. PayPal debit card. Because of the above alternatives checking account , this account allows parents full access , and provides automatic alerts , consumption limits. In addition, parents can quickly initiate a transfer to an account , if students need money in an emergency.
7 . Gift cards. Gift cards are not ideal for daily expenses, because most can not be reloaded , use only in specific locations. But gift cards can make a decent student emergency fund . For example , you could in your case , the child needs to make an emergency trip home , or buy a $ 200 Visa gift cards and other types of emergencies $ 100 gas gift card. Just make sure that within a certain time no fee gift cards unused funds fee .
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