Back On Campus Means Financial Fine Tuning For Students

DETROIT (WWJ) - The kids will be heading back to school soon and some may be heading off to college. How should they deal with money when they're on their own for the first time? Flagstar Bank corporate affairs and quality director, Beth Correa, says they should have a debit card, but not something else.

"I always recommend that people stay away from a credit card, because you can get in trouble with that," says Correa. "If you are going to use that - make sure you are very disciplined."

So is a debit card the answer for college students?

"It's really easy to get into trouble with using a debt card when you get to college," she says. "Also thinking about when you are away from college -- how do you budget for some of those things you'll need -- when you are at college. You have to pay for some books, making sure you are budgeting for meals ..."

Correa recommends having a $50 - $100 cushion in a student's checking account and advises that they check their balance every day to avoid overdraft charges.