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