Financial Records
Banking
Where's the best place to bank? Should my student keep his bank account at home? Or should he get a checking account at school?
Almost all stores and service providers take out-of-town checks with a state-issued identification card and a student I.D. In emergencies, it can be quickest and easiest for parents to transfer funds from their hometown bank account into their student's checking account at the same bank. With electronic banking, however, transferring funds has become increasingly efficient, and the location of the student's account is less critical. A debit card attached to the student's checking account enables students to obtain cash or pay for purchases with no concern about where the account is housed. The determining factor might be whether the student can find a cash machine that does not charge a transaction fee. On-campus and local banking could provide easier access to no-fee ATMs.
Be sure, if you’re student has a debit card, that the card will not allow charges or withdrawals when the account does not have sufficient funds. Some cards allow overdrafts, which include an overdraft fee.
Identity Theft
“When my nephew went to college, one of the people in his residence hall got hold of his credit card numbers and ran up some huge charges. It worries me that something like that could happen to my son. Is there something we can tell him to help him avoid that kind of problems?”
College students might put more trust in their roommates or friends than they should. Students empty their pockets, leave identification and credit cards on the top of the dresser, and then fail to lock their doors when they visit a friend next door or just run to the bathroom for a minute. It's important that students know about the dangers of identity theft and take simple precautions. Don't leave financial or personal information lying around, lock the door, and don't give passwords to anyone. For more on identity theft, see the Minnesota Attorney General's web site.
The Federal Trade Commission estimates as many as 9 million people have their identity stolen each year. College students are at high risk because they are centralized and don't usually take measures to protect themselves. Here are some steps you and your student can take to minimize the risk of identity theft.
- Buy a shredder and get in the habit of shredding documents before throwing them out
- Never leave outgoing mail in your mailbox
- Don't put your Social Security number on checks
- Make sure you get all your credit card receipts
- Don't carry multiple credit cards
- When shopping online, stick to the larger, more reputable Internet retailers
If you or your student is a victim -- Take Action Immediately
Contact the Credit Bureaus to Place a Fraud Alert on Records
- Equifax
P.O. Box 105851
Atlanta, GA 30348-5851
Phone: (800) 685-1111 - Experian
P.O. Box 9595
Allen, TX 75013-9595
Phone: (888) 397-3742 - Trans Union
P.O. Box 1000
Chester, PA 19022-1000
Phone: (800) 916-8800 - Contact Banks and Creditors to Report and Possibly Close/Freeze
Accounts Report the Crime to the Police
Keep Detailed Records of All Costs and Interactions
Cancel Stolen Checks
Test Yourself
To test your knowledge of identity theft, take the Federal Trade Commission's interactive quiz. For more details on identity theft, visit Fighting Back Against Identity Theft.