| By now many college students are back on | | | | debit card transaction.A big drawback is the |
| campus, if not in class | | | | lack of theft protection. If the card is |
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| then settling into their dorm rooms and | | | | stolen, you have two days to report it, or |
| getting ready. Among their | | | | else you are liable for |
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| books, bed sheets, new clothes and other | | | | $50 of unauthorized charges. This jumps to |
| necessities will be quite | | | | $500 if you don't discover |
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| often a credit card. Sometimes with the | | | | the theft. If you wait over 60 days, forget |
| parents name on it, sometimes | | | | getting your money back. |
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| just the students own.Nearly 75% of all | | | | To boost use of their cards, Visa and |
| sophomores, juniors and seniors have maxed | | | | MasterCard are promising that |
| out at | | | | |
| | | | they won't hold users liable for |
| least one credit card. Nellie Mae's survey | | | | unauthorized usage. These cards |
| in 2000 showed 23% of all | | | | |
| | | | carry the appropriate company logo and don't |
| freshmen and 92% of all sophomores had at | | | | require a PIN number for |
| least one card in their | | | | |
| | | | usage. You sign a receipt just like a credit |
| pocket.I don't need to lecture you on the | | | | card, only the money |
| danger of giving a credit card to | | | | |
| | | | will be removed from your account in a day |
| a college student who is working part time | | | | or two.I could go into detail about how a |
| and going to school full | | | | credit card works, and how you |
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| time. The average student will earn a | | | | can use a debit card for cash withdraw from |
| bachelors degree with $30,000 | | | | ATM machines, but I don't |
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| in student loan debt and nearly $3,000 in | | | | need to.The best method of paying for |
| credit card debt. Not good. | | | | purchases by college students is still |
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| I recommend a debit card for the simple | | | | cash. But for those who want the convenience |
| reason that when used, you | | | | of plastic, the debit |
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| are only using money you already have. When | | | | card is the next best thing. So if you gave |
| you swipe the card across | | | | your college student a |
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| the terminal at the store, the information | | | | credit card this year, take it away and |
| is transmitted to your | | | | replace it with a debit card. |
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| bank which then takes the money out of your | | | | And then hold the student accountable for |
| account. Ta-da, no debt. | | | | their purchases and go over |
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| Of course if you have automatic overdraft | | | | their transaction record a couple times a |
| protection this feature is | | | | semester.Roger SorensenAmerica's Financial |
| | | | Guide can be found at ==> Subscribe to Money |
| worthless. AOP extends you a loan instead of | | | | Basics via - Are you ready for financial |
| bouncing the check or | | | | freedom? |
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