06 Sep 2012

Why College Debit Cards are Beneficial

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With the new school year upon us, many college students are returning to campus. They are also trying to figure out how to pay for their tuition, books, and other living expenses. Juggling college expenses can be tough for young people, and it is important that they learn how to manage their money early on so they do not run into financial troubles down the road. College student ID debit cards are the ideal way for students to learn how to create budgets for themselves and pay for college.

At the beginning of their college term, many students will receive financial aid refunds in the form of paper checks or direct deposits. Many universities are now allowing students to have the option of receiving this money on a prepaid debit card. This is a hassle-free way for students to obtain their money and learn how to use a debit/credit card correctly and responsibly.

Like many debit cards, student ID debit cards come with overdraft and insufficient funds fees that the students will have to pay. Many people who are against student debit cards argue that these fees are unfair for students. But these fees are something that the students will have to deal with as adults. It is known that 46.6% of young adult account holders get overdraft fees. Learning how to avoid getting penalty fees early on will help students become wiser with their finances as adults and be able to budget their money better.

Some colleges also offer direct deposit when it comes to the student debit cards. If a student works for the university, they will be able to obtain their money faster than receiving a hard check. Having their paycheck immediately available will allow the students to be able to pay their bills on time and not have to wait for the check to clear before their money becomes available.

It may seem that universities are trying to rip off students by penalizing them and taking money from their student loan refunds. But if a student is responsible with their money and does not bounce a check or overdraw from their account, they will not have to deal with these penalties. The student debit ID card is a learning tool for college students and is a good way of teaching them how to handle their money in a responsible way and keep a budget.

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