Moms and dads, what are you hearing from your kids?

Any ideas to share on how you manage your college stress level? Tell us about them!

PSAT  — the Preliminary Scholastic Aptitude Test is a mini version of the Scholastic Aptitude Test (SAT). Many schools administer this test for juniors in the fall, so you can check with your guidance counselor for information specific to your school. The PSAT is a great way to practice for the SAT. Plus, top scores can qualify you for National Merit Scholarships.

SAT  — the Scholastic Aptitude Test includes Math, Critical Reading, and Writing sections. SAT scores are reported on a scale from 200 to 800, with additional subscores reported for the essay (ranging from 2-12) and for multiple-choice writing questions (on a 20-to-80 scale).

ACT  — the American College Test includes four skill areas: English, Math, Reading and Science. Composite scores range from 1-36. There is also an optional writing test which some colleges require. 

As you gear up for these standardized tests, here are some to-dos to get you started:

• Decide which test you're going to take. Examine all the schools you're considering applying to and determine which test(s) they require. Many schools now accept both the ACT and the SAT, but check with the school of your choice. Each test lasts about three hours but it's important to remember that the SAT has a penalty for wrong answers.
• Keep the registration timeline in mind. Don't miss the deadlines! Register for the test you're taking at least six weeks ahead of time to give yourself time to prepare.
• Find a study method that works for you. Back in the day, I took a series of classes offered by my high school to get ready for the ACT. They helped me prepare for the types of questions I'd encounter and also how to budget my time throughout the test. Along with various classes  you could take practice tests online or grab a book  designed to help you prepare.

How did you prepare or are you preparing for these standardized tests? Please share any tips you have for success with us and the SLD community!

CH: How much money do you need to start a 529 plan?
Sarah Henriksen: Typically you can open an account with as little as $250. And, many 529 plans waive this minimum if you set up an automatic investment into the account of as little as $15 per month. A program of regular investment cannot assure a profit or protect against a loss in a declining market.

CH: How much can an individual contribute to a 529 plan per year?
SH: We talked about the low limits for starting a 529 plan. On the other end, 529 plans have very high contribution limits. There is not a specific annual limit as long as you don't exceed the 529 plan maximum, which can be over $300,000 depending on the plan. One thing to keep in mind is 529 contributions are considered completed gifts to the beneficiary, subject to the annual gift limits. For 2009, the annual exclusion amount is $13,000 (or $26,000 for married couples), which means any contribution over that amount may be subject to gift tax. If you are looking to make a larger contribution in one year, you can contribute up to five times the annual limit without incurring gift tax by prorating that contribution over the next five years. This is a unique benefit of 529s, which is not available through any other investment vehicles.

CH: Is there a total contribution limit?
SH: Most 529 plans set their contribution limit with the goal of allowing families to invest enough for five years of college, plus graduate school. As you can imagine, this means the total contribution limit for most 529 plans is quite high. Depending on the plan, the limits can be $300,000 or more.

CH: How is the money withdrawn to make college payments?
SH: Another benefit of 529 plans is that the account owner controls when and how a payment is made. This means you can ensure your funds are used for school expenses and not concert tickets or the latest video game. And, most 529 plans offer a lot of flexibility for withdrawing the funds. You can choose to have funds sent directly to the school, to the beneficiary or even to yourself if you want to get reimbursed for expenses paid out of pocket.

CH: Can participants continue to contribute to the plan while the student (beneficiary) is in college and making withdrawals?
SH: Absolutely! A recent study from the American Enterprise Institute found that fewer than 60% of new students graduate from college in less than 6 years!* Chances are, your student will be attending school for years, and if he or she decides to attend graduate school, that can increase even more. 529 plans provide the benefit of being able to contribute while students are still in college in order to take advantage of the benefits the plan offers while they are attending.

CH: What is a good source to learn more about 529 plans?
SH: A great place to start would be on the Wells Fargo website at www.wellsfargo.com/investing/education/529.

*Diplomas and Dropouts Which Colleges Actually Graduate Their Students (and Which Don't) by Frederick M. Hess, Mark Schneider, Kevin Carey, Andrew P. Kelly. AEI Online, June 03, 2009.

Remember: 529 plans involve risks, including the possible loss of principal. Consult a program description for additional information on risks.

Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment management and administrative services to certain 529 college savings plans. Shares in these programs are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo & Company.

INVESTMENT PRODUCTS * NOT FDIC INSURED * NO BANK GUARANTEE * MAY LOSE VALUE

CH: What are the tax advantages involved?
Sarah Henriksen: 529s offer a number of tax advantages. For the average investor, they can typically be broken down in three categories: when the money goes in, while it is invested, and when it comes out. For money that is invested in a 529 plan, many states offer an upfront state tax deduction or credit. This will depend on whether your state offers this benefit and often time requires investing in your own state's plan. Because of this, it's important to consider any benefits your state's 529 plan might offer when deciding where to invest. While the money is in the plan, it grows tax-free. This means any earnings or growth in the account will not be taxed while it is invested. Finally, when the money comes out, as long as it is used for a qualified expense, it will be completely federal tax-free. Most states also offer state tax-free withdrawals as well. This can be an extremely valuable benefit especially if your account has increased in value over a number of years.

529 plans also offer unique tax advantages for families with estate planning needs, such as the ability to move assets out of your taxable estate, while still retaining control of the account. As always, it is important to consult your tax advisor to determine how these various benefits might apply to your situation.

CH: What can the funds be used for? Tuition? Books? Living expenses?
SH: The funds from a 529 plan must be used for higher education expense, but beyond that there is really a lot of flexibility. Qualified expenses include tuition, fees, books, and any supplies or equipment required for enrollment or attendance. Room and board is also considered a qualified expense for students enrolled at least half time. In addition, for tax years 2009 and 2010, computer expenses are also qualified, regardless of whether they are formally required by the school. I should also point out that if you need to take money out to pay for some other type of expense, this is possible. However, the earnings on any "non-qualified" withdrawal will be subject to income tax and an additional 10% federal tax.

CH: What type of schools can 529 funds be used for?
SH: 529 funds can be used for almost any post-secondary school across the country and even a number abroad. This includes technical, vocational, two- and four-year colleges, universities, and graduate schools.

Remember: 529 plans involve risks, including the possible loss of principal. Consult a program description for additional information on risks.

Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment management and administrative services to certain 529 college savings plans. Shares in these programs are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo & Company.

INVESTMENT PRODUCTS * NOT FDIC INSURED * NO BANK GUARANTEE * MAY LOSE VALUE

First, let me give some background. A 529 plan is a tax-advantaged investment plan for parents or others who wish to invest money for higher education expenses. They are state-sponsored programs, usually managed by a financial services firm. Tax advantages and a surprising degree of flexibility are just a few of many benefits that families derive from 529 plans.

CH: So Sarah, who can start a 529 plan? Does it have to be a parent?
Sarah Henriksen: 529 plans offer a lot of flexibility as far as who can start a plan. Generally, anyone of legal age can open an account for someone else. This can include parents, grandparents, aunts, uncles, even your neighbor.

CH: Can multiple individuals contribute to the same plan? (Parents and grandparents, for example?)
SH: Most 529 plans strive to offer a lot of flexibility by allowing anyone to contribute to the same plan. However, rules vary by plan so it is important to consider different plan features before opening an account. Note that most plans also allow flexibility to open multiple accounts for the same beneficiary; for example, if both the parents and grandparents want to maintain control over their own contributions.

CH: Who can utilize funds from a 529 plan (in other words, who can be the beneficiary)?
SH: Although some state pre-paid tuition programs impose age and residency requirements, with 529 savings plans there are no restrictions or age limits on who can use the funds. The beneficiary can be a newborn through adult. In addition to investing for a child's future education expenses, an adult looking to go back to school can open an account for his/her own higher education expenses.

CH: Can there be more than one beneficiary per plan? (In other words, can you have a single 529 plan for multiple children?)
SH: Only one beneficiary can be listed per account. However, it is possible to open an account for one student, and then later change the beneficiary on that account to a new student. The only requirement is that the new student must be a "member of the family" of the previous beneficiary. And of course, you can always open more than one account for each student. This may make particular sense if your students will be starting college at different times, which might make different investment options more suitable for their respective accounts.

CH: What if the named beneficiary decides not to attend college — what happens to the funds? Could another beneficiary use them?
SH: This is a common question parents have when investing for college, especially if their kids are young. Since you can never know for certain whether your child will attend college in the future, a nice feature of 529 plans is the ability to change beneficiaries to another family member. If your child decides to take a break from school or has funds left over, the money can also be kept in the account in case he or she returns to school. If it looks like the money will never be needed for higher education expenses, the money still belongs to the account owner and can be withdrawn at any time. At that point, however, the earnings on the account would be subject to tax and a 10% penalty.

CH: If the beneficiary is already in high school, is it "too late" to start a 529 plan?
SH: It's never "too late" to start a 529 plan. Any amount you are able to put away ahead of time is going to help when it comes time to pay for college. You will still enjoy the tax-free growth of the plan as well as potential state tax benefits, depending on where you reside. Most plans offer conservative investment options for families that have a shorter timeframe until they need to access their funds.

Remember: 529 plans involve risks, including the possible loss of principal. Consult a program description for additional information on risks.

Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment management and administrative services to certain 529 college savings plans. Shares in these programs are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo & Company.

INVESTMENT PRODUCTS * NOT FDIC INSURED * NO BANK GUARANTEE * MAY LOSE VALUE

So, our very first question is: How are you paying — or did you pay — for college?

If you have other thoughts to share about paying for college, let us know!

For a lot of students, saving money for college doesn't feel like an urgent matter until the summer before you leave — when all the "busy-ness" of senior year and excitement of graduation are past. By that time, you know where you're headed for school and how much financial aid  you're getting and it all finally feels real.

Unfortunately, June is a little late in the game to start a real savings plan for fall. You'll be better off if you start concentrating on saving right now.

So how can you get motivated? Try to make it real for yourself. Forget about the vague, fuzzy "saving for college" idea — start thinking more specifically about what things you'll need to pay for next year. No matter where you go to college, you're going to have some of the same expenses , so list them out and use them as goals to save for. Here are some ideas:

• Laundry money — laundry will probably cost around $5 a week. Plan on 40 weeks worth of laundry, and make a goal to save $200 to stay in clean clothes for the entire year.
• Eating out money — even if you stick to your pre-paid meal plan, that generally doesn't include supper on Sunday nights. Figure you'll spend $10 eating out on Sunday nights each week — and aim to save $400 to cover Sunday meals for the year.
• Books — these will probably run anywhere from $200-$600 per semester. Set a goal of saving $500 for your first semester's books.

These are just a few of the basics you'll need a stash of cash to cover during your first year of school. Try saving for just one of these items to make it a really achievable goal. It feels good to know exactly what you're saving for — and what it takes to get there.

Are you saving money for college? Tell us how it's going!

I didn't live in San Francisco in 1989, but I did from 1998-2000, where I experienced my share of small quakes. One fall morning in my tiny Noe Valley  studio, I was attempting to open a stuck dresser drawer. Just as I yanked it open, I noticed that my glass closet doors were shaking. I thought to myself, "I didn't pull it THAT hard!" Then I turned around and saw that the rest of my apartment also was moving — and realized I was in the middle of my first earthquake.

At that point in my life, I wasn't prepared for an earthquake. I didn't know that I should move into a doorway or underneath a sturdy piece of furniture. I hadn't assembled an earthquake kit. I'm a Midwesterner! Give me a tornado or a severe thunderstorm, no problem, but an earthquake? No idea what to do.

If you're in the same boat as I was back then, the Bay Area Chapter of the American Red Cross  has put together a series of preparedness webisodes  for young adults that can help you make a communication plan with friends and family, put together a disaster survival kit, and more. It's good stuff.

Check it out and be prepared!

Last week I got an email from a friend and former Wells Fargo colleague, who'd had an interesting experience at her local drugstore:

I had my Wells Fargo jacket on in Walgreens  today and this kid asked me, out of the blue, "How do I get credit, if I don't have any?" I was kind of taken aback for a moment — do I look like a lady who knows about credit? And then he said, "Well, don't you work at Wells Fargo?"

So we started this strange conversation about how he was going to school and needed to get a loan, and couldn't build up his credit because he didn't have any, and because he didn't have any history they wouldn't give him any credit. I didn't know what to say. I kind of wanted to run out of the store. But I told him I would check into it for him.

Gotta give this kid props for walking up to a total stranger and asking for credit advice!

And at the same time, I'm thinking, this poor kid — he clearly hasn't received any credit education at home or at school, so he has to ask a total stranger!

What makes this story particularly timely is that today is Get Smart About Credit Day.  Every October, the American Bankers Association hosts this initiative to educate consumers and students about credit. Given the current economic environment — where credit is harder to come by — these efforts are more important than ever.

Fortunately, if you want to get smart about credit, you don't have to go to the drugstore. Stay put and check out some of these resources Wells Fargo offers:

• Smarter Credit Center
• Credit Education
• Student Credit Education
• Hands on Banking financial education program 

And don't forget: By law, you're entitled to one free credit report every year. 

So, what credit questions can we answer for you?

Well, now that you're in college, the questions keep on coming, but this time you get it from every new person you meet (which is a lot your freshman year): "What's your major?"

If you're undeclared, that gets to be a pretty short conversation. And eventually you do have to settle on a major. So how are making the major decision? Here are some ideas to get you started:

1. Take some career aptitude tests. Check with your academic advisor to see if he or she can recommend some good tests. You can find a number of these tests online, but beware — they may be commercially linked, so it's probably best to get some advice before diving in.
2. Ask the people who know you best. I majored in journalism on the recommendation of my brother. I loved to write, so I don't know why journalism hadn't occurred to me. I guess at the time, I wasn't thinking about my talents as much as I was thinking about what I "should" major in to get a good job.  Entertain the ideas of those who see you from the outside looking in. They shouldn't make your decision, of course, but they may have some good insight for you.
3. Explore potential jobs. Check out potential jobs as a way to explore different majors. Do some volunteer work, get an internship, do some job-shadowing — and always ask people what they majored in. You're likely to find some surprises along the way — and you might get some career-path ideas.
4. Do some research. Thumb through your school's course catalog, check around online, browse some career-books, read articles and reports about fast-growing career fields  and list anything that catches your eye. It's a good way to gauge your interests, and remind yourself what's out there.
5. Know what you're getting into. As you're making your decision, definitely follow your heart and your talents, but be realistic and know what you're getting into.  Think not just about the major but about the career path you plan to follow. Consider what jobs in the field will pay and compare it to what you're paying (and borrowing) for school. Be sure that reality plays some part in your decision and that you're keeping the future in mind.

Have you decided on a major? How did you make your decision?

Are you searching online? Talking to your parents or guidance counselor? Reading up on the literature colleges send you?

These are all good approaches, but when it comes to choosing you college, nothing really beats an in-person visit to the campus. Many campuses host special "Senior Days"  where you can get a personal tour, lots of good information and maybe even some cool freebies like game tickets.

It's great to visit on a Senior Day because of all the pre-planned sessions just for you. But if you can't make it to a pre-scheduled day like that, check out this link  for some help for planning your own campus visit.

If you've already attended a Senior Day, let us know how it went!

To help you out, here are some items to check off your list of repayment to-dos.

1. Make a plan. Calculate how much your monthly student loan payments will be (be sure to calculate any private student loan payments as well). Make sure you have at least this amount in your budget. Can you allocate a bit more to your loans? Remember paying a little more each month can mean paying less over time. Does it look like your monthly obligations are going to be tough? Then check out the next to-do.
2. Explore your repayment options. There are tons of repayment options for Federal Stafford loans. You can stay on a standard payment plan, extend your repayment if you have a certain amount of federal student loan debt, have your payments based on income if you qualify, combine your loans into one new loan or delay your payments in some circumstances.

Take some time to learn about all your options starting with these:

• Standard, extended, graduated and income-sensitive repayment plans
• Income Based Repayment
• Federal student loan consolidation private student loan consolidation
• Deferments and forbearances

As you explore your options, remember just because you can delay your repayment doesn't mean you should.

3. Know how to contact your lenders. Staying in touch with your lender is a vital part of repayment. Keeping the lines of communication open will help your repayment go as smoothly as possible. Plus, if you hit a bump on your repayment road, talking with your lender about your options can help you get through the situation together.
4. Decide how you'll make your payments. In this technological age, there are more options for payments than the traditional check through the mail. You may be able to manage your loan online. Check with your lender to see if they offer the option to make payments automatically or through your bank's online bill pay service. Making on-time payments is super important, so find the payment option that works for you to ensure your payments arrive to your lender on time.
5. Keep your cosigner informed. I threw this one on the to-do list for those of you with private student loans. Chances are your private loan also has a cosigner whose credit is tied to the good repayment of that loan. Talk through your repayment plan with them to ease their mind a bit. After all, they did put their credit on the line for you.

So let us know: Are there any other items on your repayment to-do list?

What's so special about the new application? For one, you — our customers — had a hand in designing it! See, you told us what some of your pain points were, and we listened to that feedback and used it to design something that works better.

Here are some of the changes we made:

• Up front, the application suggests which student loan products might best meet your needs, based on your school, grade level, program, and cost of education.
• The application itself has been condensed so there are fewer pages to click through.
• Throughout the application, there are hyperlinks to define any terms that might be confusing, as well as clearer instructions for cosigners on private student loans (and we know you have many questions about cosigners!).
• Finally, the application clearly details the next steps in the process so you know exactly what to expect before, when, and after you apply.

All in all, very solid improvements that we hope will make your customer experience even better.

Speaking of customer experience, have you used the new online student loan application? If so, any feedback to share? We're listening!

Recently Wells Fargo made a change to its overdraft charge policy that makes those mistakes a little easier to swallow!

In the near future (the final date’s still TBD), your account will not be assessed overdraft fees if you become overdrawn by $5 or less. Also, no more than four overdraft charges will be charged per day.

Also, in the coming months, customers who want to opt out of overdraft coverage will have that option — you’ll be able to specify that you don't want your transactions authorized or paid into overdraft if you don't have funds to cover the transaction.

That's all good news, but more importantly, how can you avoid overdrawing your bank account in the first place? Just a few simple ideas:

• Bank online. Get yourself set up for online banking, so you can view your account any time. You can see pending transactions and easily transfer balances from one account to another, which can help you avoid overdrafts.
• Sign up for overdraft protection. At Wells Fargo, enrollment in overdraft protection is free, and can dramatically reduce the fees you're charged for overdrawing your account.
• Sign up for mobile banking. Right now Wells Fargo is offering this service for free. It allows you to keep track of your account, like check balances, review recent activity, and transfer funds — all from your mobile phone.
• Go low-tech. Although many online tools are helpful, you don't have to be high-tech to keep good track of your bank account. Use a good old-fashioned check register to record all your account activity: check card purchases, deposits, ATM withdrawals, etc. You can also use this as a backup, even if you're banking online.

So tell us: How do you keep track of your bank account?

UPDATE: Oops, we jumped the gun on our original post! We recently learned these changes to our overdraft policies are a work in progress, which means they’re not yet available. We’ve updated our post to reflect that! We apologize for any confusion this may have caused and will let you know when those services are up and running.