I live in the U.S., and my daughter will be starting college in England in the fall. She is financially dependent on us, has no credit history, and will not have a job while she's in college. We'll be paying directly for her major expenses, but she'll need to spend money on minor stuff, and we also need her to be able to handle emergencies. What is a good way of setting this up?
My wife suggested that we get her a credit card and co-sign for it. I'm concerned that this will set up a situation where our daughter perceives the money as something that flows from a tap; I would rather be able to dole it out to her so that she knows she has a monthly budget, while still allowing for emergencies.
Is a debit card a better option? If so, would it be better to have the card drawn on a US account or one in the UK? Do debit cards from US banks work abroad?
It would also be helpful if answers could go into the fees involved, including fees for transferring money between countries, as well as the miscellaneous fees banks charge on debit cards -- which I hear can be extremely exploitative here in the US.
