Going through a college or university is usually a trying period for parents and their wards.
However, experts say it is important for parents to discuss finance with their undergraduate children at this crucial time.
According to them, while college students might roll their eyes at the idea of making a budget, knowing how to manage money is vital to the college experience. They add that by passing on a few words of wisdom, parents can give their children the tools to start college on the right financial foot.
Jacqueline Curtis, an experienced style expert, who focuses on getting by on a tight budget, suggests the following tips for college students:
Create a budget
Carefree high school students frequently spend whatever is in their bank account, living off their parents’ generosity or the spoils of a part-time job. Once that student moves away to college, a budget becomes crucial.
Whether or not your child has been exposed to a budget, it’s important that you sit down together to look at finances. Map out his or her various streams of income, including money you will provide, income from a job, and money coming from student loans, grants, and other types of financial aid. Then, show your college freshman how to categorise expenses so he or she knows where it’s all going. While you can’t force your student to stick to a budget, you can feel confident he or she knows how to use one and has a clear picture of what is and isn’t affordable.
As stated, the trick with any budget is sticking to it. Once you and your child have gone over the budget, take some time to talk about how to make smart money choices that fall within the budget. For instance, help him or her navigate free or low-cost social activities, such as outdoor concerts, city-sponsored events, or school-sponsored adventure trips. You know your child better than anyone, so if he or she loves spending money on cappuccinos or the latest designer clothes, take some time to talk about buying clothes from discount retailers.
Use online services
College students are not likely to sit down and go over finances in an excel spreadsheet – especially when there are better options available. Instead, set your student up with an online service or smartphone app that makes money management easy and convenient. After all, that smartphone is practically glued to his or her hand anyway.
Minimise student debt
There are several ways to minimise student debt. Make sure you cover all the bases before sending your freshman off to school.
Spend on the right things. Naturally, college students shouldn’t use financial aid to fund pizza night in their dorm rooms, but temptation is a powerful thing. Take the time to impress the importance of using debt wisely. Even if loans look like “free money” now, they do come back to bite you. It’s your job as a parent to define what is and isn’t okay for your child to use loan money for. Tuition, books, housing, and maybe food plans – not social outings, new clothes, or pitching in for a party keg.
Look for student discounts
College students should become masters at exploring the ways their educational status can save them money. Vendors, local venues, restaurants, and services near college campuses often offer student discounts that could save your freshman big money during the first year. What’s more, by looking for discounts, students learn the value of hunting down great deals.
Set financial limits
One way to help your child curb first-year spending is to propose financial limits for unnecessary items. Setting a spending limit doesn’t necessarily prevent your freshman from making impulse purchases, but it should give him or her pause to assess whether or not the new iPhone is really necessary.
Avoid full-price textbooks
Textbook are the budget-breaker of college students everywhere. While it’s true that some professors change and update texts practically every year, the vast majority use the same textbooks year after year. That means your student shouldn’t have to bring out hundreds to shop for books before class.
There are lots of ways your student can save money on college textbooks, such as searching for posts on campus bulletins. Or, have your child check out websites where many common textbooks are available for rent.
However, experts say it is important for parents to discuss finance with their undergraduate children at this crucial time.
According to them, while college students might roll their eyes at the idea of making a budget, knowing how to manage money is vital to the college experience. They add that by passing on a few words of wisdom, parents can give their children the tools to start college on the right financial foot.
Jacqueline Curtis, an experienced style expert, who focuses on getting by on a tight budget, suggests the following tips for college students:
Create a budget
Carefree high school students frequently spend whatever is in their bank account, living off their parents’ generosity or the spoils of a part-time job. Once that student moves away to college, a budget becomes crucial.
Whether or not your child has been exposed to a budget, it’s important that you sit down together to look at finances. Map out his or her various streams of income, including money you will provide, income from a job, and money coming from student loans, grants, and other types of financial aid. Then, show your college freshman how to categorise expenses so he or she knows where it’s all going. While you can’t force your student to stick to a budget, you can feel confident he or she knows how to use one and has a clear picture of what is and isn’t affordable.
As stated, the trick with any budget is sticking to it. Once you and your child have gone over the budget, take some time to talk about how to make smart money choices that fall within the budget. For instance, help him or her navigate free or low-cost social activities, such as outdoor concerts, city-sponsored events, or school-sponsored adventure trips. You know your child better than anyone, so if he or she loves spending money on cappuccinos or the latest designer clothes, take some time to talk about buying clothes from discount retailers.
Use online services
College students are not likely to sit down and go over finances in an excel spreadsheet – especially when there are better options available. Instead, set your student up with an online service or smartphone app that makes money management easy and convenient. After all, that smartphone is practically glued to his or her hand anyway.
Minimise student debt
There are several ways to minimise student debt. Make sure you cover all the bases before sending your freshman off to school.
Spend on the right things. Naturally, college students shouldn’t use financial aid to fund pizza night in their dorm rooms, but temptation is a powerful thing. Take the time to impress the importance of using debt wisely. Even if loans look like “free money” now, they do come back to bite you. It’s your job as a parent to define what is and isn’t okay for your child to use loan money for. Tuition, books, housing, and maybe food plans – not social outings, new clothes, or pitching in for a party keg.
Look for student discounts
College students should become masters at exploring the ways their educational status can save them money. Vendors, local venues, restaurants, and services near college campuses often offer student discounts that could save your freshman big money during the first year. What’s more, by looking for discounts, students learn the value of hunting down great deals.
Set financial limits
One way to help your child curb first-year spending is to propose financial limits for unnecessary items. Setting a spending limit doesn’t necessarily prevent your freshman from making impulse purchases, but it should give him or her pause to assess whether or not the new iPhone is really necessary.
Avoid full-price textbooks
Textbook are the budget-breaker of college students everywhere. While it’s true that some professors change and update texts practically every year, the vast majority use the same textbooks year after year. That means your student shouldn’t have to bring out hundreds to shop for books before class.
There are lots of ways your student can save money on college textbooks, such as searching for posts on campus bulletins. Or, have your child check out websites where many common textbooks are available for rent.
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