Financial tips for first-year university students
By Nashwa Beheiry
Digital Banking Expert
By now, young adults should have some knowledge about payments and budgeting. Here are some of the payment methods you can use to cover their financial needs during this stage.
The time has come. Children are young adults going to university and you must make decisions together: What to study? Which university? Where? Here in Jordan or abroad? Will they be staying at home or going to live on campus? Will they be renting their residence? And many more matters to tackle. In any case, you need to decide on how you will be providing them with financial support:
Cash
Traditionally, cash might be appropriate if your adolescent stays with you and goes to college in the same city. Disadvantages are:
•They will not get the chance to explore banking services to prepare them for post-graduation
•Controlling expenses and budgeting will be difficult
•Parents will not be able to monitor their financial behaviour
Linking a debit card to a bank account
Opening a bank account and issuing a debit card for your kids will allow you to transfer money from your account to theirs, especially if they are studying abroad. Then they can use the debit card at the merchant’s point of sale.
If they need cash, they can withdraw directly from the bank or ATMs. This option will help kids:
•Get familiar with banking services
•Manage their spending using statements of account and card
•Think about the choices they make as well as the consequences
•As a parent, it will help you monitor their spending
However, the disadvantage here is that the cost can be slightly higher than other means.
CliQ Instant payment system
CliQ is a new payment method launched in Jordan under the supervision of the Central Bank of Jordan that enables money transfers between participating banks in Jordan instantly and at no cost. Using this facility can be handy if you and your child have accounts in different banks. The benefits in this case are:
•You send money at no cost
•You’ll get confirmation of receipt
•Your child can send you a request to pay
E-wallets and mobile money
A convenient local method for executing money transfers and payments is to use ‘’Electronic Money’’. The Central Bank of Jordan has been encouraging such payments in the last few years, especially since the pandemic.
Most banks in Jordan, along with seven other institutions, provide the service of ‘’Electronic Wallets’’ whereby you can transfer money from person to person using their mobile phone number on an application and not depending on a bank account, at no cost.
The recipient can use the money to pay directly from the wallet to merchants for their purchases, pay bills, transfer to another person, or withdraw cash from any ATM. This payment method is:
•Safe
•Easy
•Convenient
•Enables you to monitor and analyse spending behaviours and budgeting
International instant payments
Several international payment institutions represented by Jordanian banks and money exchange offices are available across the country.
You can transfer money locally or internationally by going in person to the representative and handing cash, transferring the money from your bank account, online, or using the mobile application of the desired payment institution. Then your kid can receive the money in cash at the nearest representative branch of a financial institution. This option has the same disadvantages as handling cash.
Finally, no matter what method you use, it is essential to stress caution about identity theft — never sharing personal identification, account/card numbers, passwords, or financial information with anyone to protect them from all types of fraud.
Reprinted with permission from Family Flavours magazine