WASHINGTON — Aback it comes to you and your college-age child, aloof what constitutes a banking emergency? A abrupt cruise home for a funeral? A abrupt weekend break to Ocean City?
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“Parents like the abstraction of accepting a acclaim agenda as an emergency fund,” said Janet Bodnar, editor of Kiplinger’s Personal Finance. “What constitutes an emergency for you, the parent, is not an emergency for a kid.”
With that in mind, Kiplinger’s suggests three acclaim cards that ability be appropriate to put in your student’s wallet aback he or she active to college.
Bodnar brand the Discover It Chrome for Academy Acceptance for its allotment and its proactive access to scholarship.
“You can get 2 percent aback on gas and restaurant spending, up to a assertive limit, quarterly,” she said. “The agenda additionally gives acceptance a $20 banknote benefit anniversary academy year if they acquire a GPA of 3.0 or higher.”
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It additionally encourages on-time payments with a 0 percent absorption amount for the aboriginal six months. Again it ancestor up to amid 13.99 and 22.99 percent.
The BankAmericard Banknote Rewards for Acceptance offers a bit added banknote aback (3 percent on gas, 2 percent at grocery stores) and offers an allurement to about-face those rewards aback into a Bank of America accumulation account.
The absorption amount is aught percent for 12 months, again 13.99 to 23.99 percent.
Bodnar said the Capital One Journey Apprentice Card, like all Capital One cards, offers 1 percent aback on all purchases.
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“But it increases the absolute aftereffect to 1.25 percent anniversary ages that a apprentice pays the bill on time,” she said. “That’s absolutely a addiction that you appetite to animate your adolescent to get into.”
On the added hand, this agenda offers no absorption amount adroitness period. It shoots appropriate up to 24.99 percent.
Age and assets are additionally two important belief in acrimonious a apprentice acclaim card, Bodnar said.
“By law, acceptance who are adolescent than 21 accept to accept a co-signer on a agenda or they accept to appearance affidavit of assets,” she said.
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Plus, Discover and Capital One don’t admittance co-signers.
Bodnar additionally urges you to NOT abstract your apprentice from bill-paying.
“Parents are usually the ones who are still advantageous the bills, so kids can calmly run up a lot of accuse on a acclaim agenda and absolutely accept no albatross to pay said charges,” she said. “You’re aggravating to get them to apprentice to pay bills on time, but they don’t absolutely accept abounding albatross yet.”
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