This money's all mine now, bank!

When I got to college, my parents and I debated between giving me a credit card or a debit card. With my propensity for shopping and dining out, my parents had enough foresight to realize I’d be $20 million in debt by the end of the first semester with a credit card at my fingertips. Debit card it was. But that didn’t come without its own share of problems.

Before I discovered the wonders of online banking, I was always petrified to use my debit card when I feared my funds were nearing depletion. The curse of the overdraft fee haunted my nightmares. There’s nothing worse than overspending by 30 cents and being charged $30 for your mistake. Then being charged another $30 for the automatic withdrawal from the bank to cover the overdraft.

WTF? How do they expect you to pay off the charge of overdrawing when having no money was the very thing that put you in this place to begin with?

But all of this may be coming to end. And hopefully, on my tight budget, it will be sooner rather than later. There is proposed legislation on the table that will force banks to ask the customer whether or not they would like the “protection” of the overdraft program instead of automatically enrolling debit card users in this plan. (Basically, we will have the option of being able to withdraw more money than we have in the account [with a fee] or only use what we got [without a fee].) Read More »

[College kids are notorious for being poor. And why shouldn't we be? We take out student loans to pay for private universities, can barely balance a part-time job with our full-time courseload, and the only "balance" we're familiar with refers to the number of points left on our dining hall cards. Oh, did I mention many of us tend to splurge every extra penny on PBR's at the campus bar?

Ok, before everyone gets up in arms about every generalization I just made, let me clarify: if you disagree with everything I just said, you probably don't need this column. But if you're nodding along because you're officially an adult and still don't know how to manage your money, then you might want to pay attention every week, because I'm going to (try to) get you through this, and make you a successful saver and a wise spender. Starving college students of the world, I bring you Money Matters: a Guide to Handling Your Income (or Lack Thereof).]

This week, I’d like to introduce you to a splendid gem called Free Student Checking. Now, normally, banks will hold your money for you, but they like to find sneaky ways to make a few bucks back themselves. Some checking accounts, for example, have a minimum balance that you always have to have in your account. If your balance goes below that minimum, you get a fine.

Yeah, that’s right. You have to PAY your BANK for being too poor to have any money in the account that consists entirely of your own money that you started out with in the first place. I understand credit card late fees– with credit, you’re spending money you don’t necessarily have– but a fine on your own money? That’s bullsh*t. Read More »

“The venerable Lehman Brothers investment bank said early Monday that it will file for bankruptcy, while Bank of America unveiled plans to buy Merrill Lynch — two pieces of news that profoundly alter the American financial landscape.”

In case you’re just waking up, Wall Street is going through some major changes.  Nevermind that Ike is causing oil prices to jump up yet again, two huge investment banks, both of which came through the 1930′s Depression, are in the process of folding.  While Merrill Lynch may be finding new life under Bank of America, Lehman Brothers, which is 158 years old, is closing it’s doors for good.

What does this mean for you?  Well, that remains to be seen.  All eyes will be watching Wall Street today, hoping and praying that other stocks will stay strong in the wake of such monumental financial crumblings.  It’s not news that our economy is currently shaky at best, and it may be too early to tell how exactly these two recent foldings will effect people’s wallets.

Let’s just think positively.  And maybe…skip that latte this morning.