Bank Accounts & Budgeting

There are just two banks in West Lafayette- Chase and Purdue Federal Credit Union (PFCU). The other big ones in the US- Bank of America and Wells Fargo are not present. The closest BoA is in Indianapolis and you have to pay $3.00 if you have a BoA account to withdraw every time from Purdue ATM.

To open a Bank Account with either- you have to visit the Bank. At BGRi, I did see the PFCU stall- but they weren’t opening accounts. Chase was not even there. If you land early into USA you should be able to open it anywhere else in the US, to avoid the rush at the banks in West Lafayette during BGRi. However, opening it West Lafayette has its advantage- your address will be local and can be used as an Indiana address proof for various purposes including getting a Real ID (State ID). So wherever possible, opt to open the account at the West Lafayette branches.

If you wish to have just one banking relationship, make it with Chase. The reason is that to send funds from abroad to PFCU is virtually impossible- they don’t have a SWIFT code. They just provide a routing code, which is rejected by banks back home. I tried talking to them thrice that a transfer was not working without the SWIFT code and they kept on insisting that a routing code should do. Chase also supports Zelle (which is similar to Google Pay) which kids will use for peer to peer transfer but PFCU does not. Finally, Chase is a national bank and has branches all over the US while PFCU is only local. So for a sole banking relationship, you have to opt for Chase! However, I would suggest you open an account at both places.

I recommend you open accounts with BOTH banks. Read on as to why!

We did this for my son, and after hearing my reasoning, many of the fellow parents at the International Parents Welcome also decided to do the same. The reason is simple- security. I decided that I would transmit funds from abroad to my son’s Chase account. The bulk of his funds would be kept in Chase, and that debit card would stay in his room locker. The only debits to his Chase account would be transfers to PFCU i.e. the Chase debit card would not be used in any online or offline shopping, and also never swiped at any ATM/ merchant or Point of Sale. This would protect it from being skimmed or be a target of any fraud.

Generally in the US, any loss on a credit card is protected by the bank, but any loss on a debit card is entirely yours, unless you can prove otherwise. So we decided that he will use the PFCU account for all his day to day needs, and transfer small fixed amounts every few weeks from Chase to PFCU as and when needed. He would carry the PFCU debit card with him. In case he lost his wallet, or his PFCU card got skimmed, or his PFCU card details were misused online, the only funds at risk would be the small amounts at PFCU. Not only that, if he lost his PFCU card, he would have his Chase as a backup to tidy him over till he got a a replacement PFCU card or the PFCU account was unblocked after any untoward event. Finally, by transferring an amount from Chase to PFCU for spending, it would act as a psychological budgeting tool. If he was spending too much, the act of making a transfer would hopefully alert him to take a critical look at his spending habits.

In fact you should open a checking and savings account with both banks. Opening checking accounts are free- zero cost! ( but with Chase savings account- you need to transfer $25 to savings monthly from your checking in order for a zero cost account. Tip- note that there is no stopping you transferring $25 right back immediately so you can get the zero cost without actually saving!). Since the Savings account is not directly linked to the checking account, in case your checking account and/or debit card is fraudulently accessed, the funds on the Savings account would be safe!

You need to physically visit the Chase Chauncey Branch and book an appointment for opening an account (you can try to call for an appointment or try and book it online here). What will not work is a walk-in… They turned everyone without an appointment when we were there. They are located on 210 W State St, Phone: (765) 423-0201; open Mon-Fri (9:00 AM – 5:00 PM); Sat (9:00 AM – 1:00 PM) and closed Sundays.

Chase allows anyone aged 17+ when applying in person if you open a College Checking account- no need of an adult or a co-signer. No monthly fees for 5 years or as long as you continue studying at university.

Their website says non-U.S. students (without a Green Card) can open a Chase College Checking account in any Chase branch by presenting one primary ID (Passport w/photo), one secondary ID (see acceptable forms of ID below) and proof of college or university student status with the expected graduation date (i-20). All such students must be living in the U.S. and have a U.S. residential address to open a Chase College Checking account in branch.

However when we went, we didn’t need anything apart from a passport and i20. No proof of address was asked so I assume they used the i20 for that.

Chase offers Checking and Savings accounts. They don’t have any lockers/ safe deposit boxes.

In the unlikely event that you will require an additional proof of local address for opening bank accounts, pease ask for guidance by submitting MyISS>General Services>Ask Student Counselor

For those without Social Security Number or ITIN (which is the case for most international students); only a debit card is given.
For those with only ITIN but no SSN- A credit card called freedom card is available.
For those with SSN but no credit history- a basic credit card is offered.
if you have a good credit history and SSN then you can get a higher level/limit credit card.

Chase always ships the Debit card after 1-2 weeks to your dorm address.

Don’t forget to activate your $100 cash back bonus offer with Chase when you open your account! See below for details..

PFCU is a financial cooperative that serves the Purdue University community. Students and scholars are able to apply for accounts without social security numbers at any of the two on-campus branches at Northwestern Ave. or Purdue Memorial Union. If you are interested in renting a safe deposit locker, you need to go the larger Northwestern Ave branch at 516 Northwestern Ave, Suite 1900 Tel- (765) 497-3328; open Mon-Fri (9:00 AM – 5:30 PM); Sat (9:00 AM – 12:00 PM) and closed Sundays.

In contrast to Chase, PFCU doesn’t accept appointments during the busy BGR/BGRi period. You have to walk-in and wait your turn. This can take a lot of time so arrive early! We went to PFCU first thing in the morning to beat the rush and it took us about 45 mins for the formalities.

Student accounts are zero monthly fee accounts and they allow anyone 17+ to open one. They say you need to bring:

• student ID
• a government-issued ID such as a passport
• your qualifying student visa or i-20
• Local Mailing Address & US Phone Number You must provide a U.S. mailing address and local phone number so you can receive communications from the credit union.

However, just a passport, visa and a local US mobile phone number were enough for us when we went as they can check online against a Purdue directory they have access to that your child is a student…It’s a fairly simple sign-up. A $25 initial deposit is required to open a checking account. PFCU gives you the Debit card on the spot at the time of opening.

In the unlikely event that you will require an additional proof of local address for opening bank accounts, pease ask for guidance by submitting MyISS>General Services>Ask Student Counselor

However, I repeat once again, sending funds to PFCU from abroad is near- impossible so dont make this your only banking account as an international student.

At the Northwestern Branch, there are different sized lockers available – 3”x5”- $30/year; 3”x10” – $50/year; 5” x10” – $65/year/ 10” x10” – $115/year. All boxes are 22 inches deep. Note that you can’t rent a locker without opening an account with them first. Storing a passport here is tricky- they require a government issued ID to identify yourself every time you visit. Unless you have a Real ID, the only thing which will work is a passport! So to access your locker, you need your passport with you. So a passport can only be stored here after you apply and get a Real ID. Also, you need to make sure you retrieve your passport during working hours a day or two before scheduled travel.

Both Chase and PFCU have banking apps that can be downloaded for online banking- do it! Remember the username and passwords. Consider sharing logon details with parents in order to track the same from home on their phones.

For many young adults, university is the first time they are living away from home and managing their own finances. This can be a big adjustment, and it’s important that they be prepared. They need to learn to manage their finances, and it’s important for students to budget carefully in order to make their money last. That’s why it’s so important for parents to teach their children about budgeting before they head off. By showing them how to track their income and expenses, parents can give their children the tools they need to manage their finances successfully. With a little preparation, you can help them start their education on the right foot financially.

• Step 1: Confirm your big purchases match your receipts
  • Do this for your 10 biggest purchases of the month, just to make sure there were no errors.
• Step 2: Make sure all your deposits are accounted for
  • Check all the funds from your parents/ sponsors or any other transfers that you have received are properly appearing.
• Step 3: Make sure your payments are accounted for
  • Check specifically larger payments, like the week’s grocery trip, or some gifts you bought online – you do not need to be exact.
• Step 4: Record your totals
  • Once you have established your true bank balance, record this number in your spreadsheet for future reference. This helps you later determine how your spending is moving from month to month.

I will share what I have set up for my son below- which works pretty well!

Assuming fees, housing, BGR/BGRi and meals have been paid and so has the Flights to and from home and the shuttle costs. Also I assume you have already paid for all the dorm shopping, winter clothes and shoes, and a bike (if you decide to buy one). These is what you should also budget:

• Approximate cost for books and academic supplies can range from $200 to $800 per semester. See Academics, Textbooks, & Exams before you buy though.
• Miscellaneous Expenses- Although miscellaneous expenses vary greatly from one person to the next depending upon personal travel and entertainment habits, you should have approximately $1000-1,500 available per semester. Below is a sample of the average cost of several common items:
  • 14-in pizza $17.00
  • Pint of draught beer in a bar $5.50
  • Gallon of milk $3.50
  • Loaf of bread $3.50
  • Box of cereal $5.80
  • Dozen eggs $3.50
  • Bag of apples $3.60
  • Laundry detergent $10.00
  • Gallon of gas $3.60
  • Movie ticket (matinee) $8.50
  • Movie ticket (evening) $9.00
  • Overseas stamp $1.55
  • One load of laundry $2.50
  • Sit-down lunch $14.00
  • Sit-down dinner $19.00
  • Fast food meal $10.00
• Lease deposit for off campus housing for next year (if you chose to sign one by November of current year)- 1-2 months rent will be required
• Travel costs– if they come home for the winter break/summer they might need to pay for their shuttles, hotel, food etc
• Summer Storage costs– can vary around $500-600
• Holiday/Breaks– if they will travel to a relative over shorter breaks like Spring break etc or visit Chicago/Indianapolis you will need to budget extra. A 3 day/ 2night trip to Chicago can cost $600-$1000 depending on what they do and where they stay.
• Gifts- if they are expected to carry gifts when they return home- budget for that

I spent some time designing a Google sheet for my son- for reconciling his bank statement and also analysing his spend on different categories of expenses. Kindly read the the first section Important notes and points 1-3 of the steps in the attached instructions FIRST

Then click this link for requesting the link to access the spreadsheet. Play around the sheet to familiarise yourself and make sure you have read all the points! Hope this helps all of you!

Request Access to COLLEGE STUDENT BANK STATEMENT & EXPENSE ANALYSIS TEMPLATE v2

Purdue University has in-depth resources, Boiler Track and Money Management in case you want to explore this in detail or want some extra assistance