CHAPTER 13
Finances
U.S. Currency
The American monetary system follows the decimal system. The basic unit of the U.S. monetary
system is the dollar, which can be divided into 100 cents. The “$” is the dollar symbol and a “¢” is the
cent symbol. Bills in denominations of $1, $5, $10 and $20 are the most widely used. There are also
$50 and $100 bills. All bills are the same size and the same color.
Coins may be used for self-service machines available in many public buildings to purchase soft drinks,
coffee, or candy. Some forms of public transportation such as buses also allow you to use coins. You
may also need coins for parking meters, and washing machines and dryers in some residence halls or
apartment buildings. You should note that most machines do not accept pennies (cents).
Samples of U.S. Currency:
1 cent (penny)
5 cents (nickel) 10 cents (dime) 25 cents (quarter)
One Dollar
(Photos courtesy of U.S. Mint and Bureau of Printing and Engraving)
Financial Terminology
Balance
Bank Accounts
Bank Statement
Bounced Check
The amount of money in your bank account.
There are several types of accounts although each bank has slightly different
policies governing them. Always inquire about a bank's services before
deciding on the type of account you wish to open. Take two forms of
identification when you open an account. If you are a foreign citizen, take
your passport and another acceptable form of identification such as a U.S.
driver's license or perhaps your college ID.
A periodic statement of your bank account and current balance, also
accessible online. It shows all the deposits made, checks written, debits and
other expenses incurred during the period covered.
A check written against insufficient funds in your account. There is a service
charge assessed for bounced checks. They can also affect your credit rating.
Cashier's Check Or
Certified Check
Check
Checking Account
Credit Card
Debit Card
Direct Deposit
Interest
Basic Account
Money Order
"Now" Account
Safe Deposit Boxes
A check sold by a bank for a fee. Cashier's checks are used to transfer
money from one place to another when personal checks are unacceptable.
Cashier's checks are issued by the bank, whereas certified checks are
personal checks that are certified by the bank for a small fee.
A written order to a bank to pay the amount specified from your checking
account. Since most banking is done online by students these days, it may
be that you’ll never use a check during your time at MHC.
A bank account against which checks may be written.
These are issued by banks, gasoline companies and stores, and are used to
delay payments for purchases. Examples are MasterCard, American
Express, Visa, and Discover. If you have an international credit card, bring
it with you, for it is an excellent form of identification. You may try to
obtain a credit card here; please bear in mind that credit cards are sometimes
not issued to international students. Annual fees and interest rates vary. Bills
paid on time are not charged any interest. If you have a credit card,
remember that you will have to pay the bill at the end of the month!
This plastic card looks like a credit card, but it is used to withdraw money
from a savings or checking account. When you use a debit card at an ATM
or in stores to make purchases, money is immediately withdrawn from your
account. You cannot withdraw more money than you have in the account.
Student paychecks will be deposited directly into your bank checking or
savings account. Once you arrive at Mount Holyoke, you should complete a
direct deposit application form. It usually takes two weeks to process your
application. More information about direct deposit is available.
Money paid to you for putting your money in a savings account or some
checking accounts; usually a percentage of the account balance. Interest is
also a fixed charge for borrowing money; usually a percentage of the amount
borrowed.
This account requires no minimum balance, but it does not earn any interest.
The number of checks you can write per month is also limited, and there is a
monthly service fee. Very few banks now offer this type of account.
A draft sold by a bank or a post office for a fee. Money orders are used to
transfer money from one place to another when it is not advisable to mail a
personal check.
A negotiable order of withdrawal is a combination checking and savings
account. It allows you to write any number of checks (with no service
charge) while earning interest on your balance. The minimum required
balance varies at each bank. There are some penalties if the amount in your
account falls below the minimum balance. The bank issues monthly
statements to help you keep track of your account.
Many banks maintain locked boxes within their vaults that may be rented by
the year. Only the key holder knows the contents of the safe deposit box
since the bank does not have access except in case of death. A safe deposit
box is a good place to keep valuables that cannot go into a bank account
(e.g., jewelry, foreign currency that you do not want to exchange and legal
papers).
Service Charge
Student Account
A fee for bank services performed to update a checking account, safe deposit
box, excessive withdrawals from a savings account and checks drawn
against uncollected or insufficient funds.
Also called a Basic Checking account, this account requires no minimum
balance, but it does not earn any interest, but there is a monthly service fee.
Very few banks now offer this type of account.
Banking
Most students find it useful to have a bank account while attending college, especially if they do not
intend to write home for funds frequently. A bank account is very useful to have for depositing cash, to
cash checks, or to have money transferred from home. The most easily accessible banks in the Five
College area are:


Bank of America: at the local Shopping Plaza in South Hadley, Telephone: 1-800-432-1000
(customer service call number)
Peoples Bank: Village Commons, South Hadley (opposite MHC), Telephone:
413-532-0133
Keep in mind that banks sometimes charge monthly maintenance fees for checking accounts, minimum
balances and ATM (Automated Teller Machine) usage. ATMs are small stalls outside of banks and in
other locations. They are open 24 hours a day. For example, there is a Peoples Bank ATM machine in
the Village Commons and a Bank of America ATM located in Blanchard Campus Center. ATM
machines can be found in many other cities or places that you visit. Usage of the ATM, however, is
subject to fees, which vary from bank to bank. It is advised to open an account with Bank of America
or People`s Bank because you can use the banks’ ATMs and you will normally not be charged a fee.
One can make deposits through ATMs or by mail. For further details, you should contact your specific
bank. Please note that you will have an opportunity to open a bank account during Orientation when a
few local banks come to campus.
Foreign (Non-U.S.) Currencies
It is advisable to carry dollars in some form, preferably both cash and Traveler’s Checks (in US
dollars). You will have to pay for your taxi fare or bus fare from the airport to the College (if you do
not arrive on the day ISOC meets students at Bradley Airport). You may also need to pay for other
things such as food and perhaps accommodations. It is advisable to have at least $50-$100 in various
denominations. Once you arrive, you will also need money for toiletries and books.
Traveler's Checks
If you decide to carry your money in the form of traveler's checks, we highly recommend that you
purchase them in U.S. dollars, since the exchange rates can be unfavorable. In addition, very few
establishments in the U.S. other than banks handle foreign travelers' checks. Every time you cash one,
you will have to pay a commission or service charge to the bank. Moreover, most of the local banks in
the Five College area will not accept foreign traveler's checks because they have to be sent away for
collection; that is, sent to a larger bank, changed there and then returned to your bank. The process
may take from 2 to 4 weeks.
Personal Checks or Cash
Personal checks or cash in a foreign currency must be sent away to collection at your local bank.
Checks made payable to you in dollars drawn from a U.S. bank will be processed more quickly than
those issued in a foreign currency (3-5 days versus 2-4 weeks). Additionally, there is a fee for
converting foreign checks or currency into U.S. currency. If possible, ask the bank in your home
country to make a check payable to you in dollars drawn from a U.S. bank.
Money Sent From Home
Once you have opened a bank account you can have money sent directly to your bank account from
abroad. The length of time it takes for money to reach the U.S. bank varies widely from as little as
three days to as long as several weeks. The time varies depending on the country and city from which
the money is sent. Money can be sent by a bank draft to you, or by electronic transfer. Your bank can
provide you with details that are more specific. Bank drafts sent to you are best sent by registered
mail. Although this may take longer, it is much safer. Banks usually charge a fee for conducting some
of these transactions.Income Tax
Non-immigrant students, researchers or professors on a J-1 or F-1 visa must file federal income tax
returns if they earn money in the United States. You are liable for federal and sometimes state taxes,
but not for Medicare or Social Security (FICA) taxes (unless you are considered to be a “resident for
tax purposes” by the IRS, usually if you’ve lived in the U.S. for 5 calendar years or more). FICA and
Medicare taxes should not be withheld from your pay, if you have a paid internship. If they are, notify
your employer to stop such withholding.
Some money, however, must be withheld from your paycheck, especially if you have a paid internship
off campus in the summer, to cover possible federal and state tax obligations that you might have.
Additionally, Mount Holyoke College is required to collect U.S. federal income tax on certain
scholarships awarded to students who are not U.S. citizens. This withholding requirement applies to
scholarships used to pay room and board, but not tuition, fees, or books. In some cases, a tax treaty
between the United States and your home country may cover you and, therefore, you are exempt from
having taxes taken out.
If you are from a country which does not have a tax treaty with the U.S., you will receive a letter from
Student Financial Services about these taxes and you are responsible for paying them by the end of
every semester. The amount you must pay varies from one student to another. Please check with Debra
Chamberland ([email protected]) in Student Financial Services, if you have any questions.
To determine your exact tax liability, you must complete tax forms and file them by April 15 for the
tax year in which you began attending at Mount Holyoke. The McCulloch Center for Global Initiatives
offers access to a special online program designed specifically for international students who are
completing tax returns. You will receive an email in January with more information. In the meantime,
you should visit the web page on the McCulloch’s Center web site:
http://www.mtholyoke.edu/global/taxes.html.
Budgeting Your Money
One of the first surprises you may experience at Mount Holyoke College is how much you may need to
spend on personal items such as books and things for your room. In the beginning, you can expect to
spend between $200 and $500. Therefore, you should bring some essential items so that you do not
have to spend money on them here. On the other hand, you may decide to buy them in local stores.
Keep in mind that the College does not pay for your books, even if you are on financial aid. You are
expected to buy them. Books for a semester can cost anywhere from $150.00 to $350.00 or more!
Most students find it less costly to buy used books from fellow students who have taken the courses
previously. The easiest way to locate these used books is by reading the bulletin boards in Blanchard.
It is common practice among students to post lists of books that they would like to sell at reasonable
rates. Another place to find cheap textbooks is online. Especially good are the following web sites:
www.amazon.com, www.half.com, www.textbook411.com.
Here are approximate costs of things that students pay for on a regular basis: a campus party can cost
between $3 and $10, a movie costs between $8 and $15. Dining out costs approximately $7-15 per
person. A load of laundry (wash and dry) on campus is $2.90. This is a very basic list. Depending on
your lifestyle, each of you will have different expenses. Try to plan when determining your finances
for the year. Snacks, laundry, newspapers, etc. cost very little when you buy them, but when you add
up how much you will be spending on these little items over a nine-month period, you may be
surprised! Part of your education here may be learning how to budget your money as well as your
time. The McCulloch Center for Global Initiatives is always available to assist you in devising a
budget to suit your needs.
Students on financial aid are allowed to work 8-10 hours per week during the fall and spring semesters.
All first-year students who are on financial aid, are required to work a minimum of three hours for
Dining Services. You are responsible for finding shifts. If there are not enough shifts in your dorm, you
have the option of working in other dining halls. A student paycheck will be issued to you once every
two weeks, so you should budget accordingly. Ways to save money include sharing newspaper and
magazine subscriptions and buying goods on sale. Intersession (in January), Reunion weekends, and
summer earnings on campus are not counted towards your maximum earnings’ limit.
Online Account Activity and eBill
This is your Mount Holyoke student account. You can access this account through ISIS—the same
place where you checked your application status. This account is under your administrative profile. If
you are billed to this account, you are responsible for paying all semester charges (tuition, room and
board, SGA fee, health insurance) before the beginning of a new semester. Students may buy books
from the Odyssey Bookshop (across the street) or the campus store and the charge is billed to their
student account. This is a wise idea when you do not have cash at hand. However, you need to make
sure that this bill is paid in a timely manner (bills are issued monthly for charges or credits that
occurred in the prior month). Otherwise, you may not be able to register for classes, access your grades
or transcript, or be housed on campus. There is an event during Orientation which provides
information about your eBill and other financial matters. Be sure to attend!
Payroll Deductions
Asking for a regular payroll deduction is a great way of making sure that your taxes and any
outstanding bills are paid—it also saves lots of trees! You can have a certain amount deducted on
every biweekly paycheck that you receive. This amount may also cover any incidental fees such as
charges for lockouts, library fines, etc. However, you may want to avoid such incidental fees, which
can be as much as $15. To set up a payroll deduction, you need to go to the Student Financial Services
Office in Skinner Hall (Room 16) and you will get assistance.
Sales Tax
The Massachusetts sales tax is 5% added to the price of all items purchases except clothing and food.
Meals purchased in restaurants are taxed, however.
Tipping
This small fee is a means of showing gratitude for a service. The customary tip is 15% to 20% of the
bill or fee. In some places, however, students can get away with tipping less. People you do tip in the
U.S. are waiters, taxi drivers, porters, door attendants, hatcheck people; you also tip for personal
services. You should tip the person who does your hair, delivery people and parking lot attendants.
People you do not tip include customs officials or other government employees such as police officers
or firefighters, mail carriers, airline personnel, room clerks or people at hotel desks, bus drivers, store
clerks, gas station attendants, theater ushers and receptionists. Ask a friend for advice as well.