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MONEY-SMART KIDS
My Own Money-Smart Kid
by Janet Bodnar

In last week's cliffhanger of a column, I wrote about how my college-student son, John, had reported his debit card stolen and was waiting for the student credit union where he had his account to credit back the $700 he lost. This week, I'll tell you the rest of the story -- and why it was so gratifying to me, both as a mother and as an expert who gives advice on raising money-smart kids.

John's card was stolen last spring. As summer went by, he fretted about the missing $700 -- a huge loss for a basically broke college kid. I suggested that he call the credit union to deliver a polite reminder. He became chummy with a guy named Kyle, who told him that the credit union had to wait for Visa to authorize the reimbursement.

John eventually decided that he might be better off with a bigger financial institution, so he went online to open a new checking account with PNC Bank. Back at school, he e-mailed me that he had finally received his money from the credit union -- but it was $50 short.

What's more, John had used his PNC check card for the first time and was charged a $1 fee when he bought a $5 sub at a convenience store -- even though, he said, the terms of his account state that there is no fee on check-card purchases. "I don't have that kind of money," he wailed.

Time for Mom to lend a hand. First, I explained to John that when you report a stolen debit card promptly, your maximum liability by law is $50. As for the $1 transaction fee, I offered to call PNC on his behalf.

A friendly young woman named Kathleen told me something that even I didn't know: When you pay with plastic, merchants sometimes run a $1 test transaction to see if the card is valid. The $1 charge showed up when John checked his account online, but Kathleen assured me it would disappear. She also confirmed that John's check-card purchases are free.

And then came the payoff for me: "I'm impressed that your son realized what happened," Kathleen volunteered. "I get calls from college kids all the time who don't have a clue about the difference between credit and debit cards."

As a reward for being my money-smart kid, softie Mom surprised John with a check for the $50 he had lost.