Parents should make a money management plan with their college-bound child. The plan should include how and when you will send money as well as how your child will pay the bills. Before they leave home, decide who will pay for the entertainment and incidental expenses. Go over the basics of a checking account: making a deposit, writing a check, checking the available balance, using a debit card, balancing a checkbook, overdrafts, bounced checks and insufficient funds. Payment options for students under 21
1. Credit cards A student under the age of 21 can get a credit card if he or she has a co-signer, or has proof of enough income to make payments. Co-signing should only be an option if your student can use a credit card responsibly. If the student makes a late payment, it also shows up on the co-signer's credit report. A parent should make it very clear that the student can damage the parent's credit score if he or she does not pay the credit card bill. If the student can't pay off the debt, the co-signer is responsible for the entire debt. Before getting your child a credit card, parents should pull out their own credit card statement and use it as a teaching tool about the dangers of paying with plastic.