Whether you’ve had children head off to college in the past or this is your first child to do so, these financial tips are a great refresher for everyone. College students are known to live off of very little money, but there are ways to change that. Going into college with a financial plan will help your child avoid worrying about money while in school and can lower the amount of debt he or she might have in the future.
Talk About a Plan
Before your child moves out and has control of their finances, they should have some sort of plan ready. This might be as simple as creating a list of part-time jobs they could apply for, or it could be a detailed plan including monthly budgets. Whatever works best for your family is the smartest option, but even a small plan is better than no plan at all. Your child will go into school feeling much more prepared to handle money if you talk about it beforehand.
Create an Emergency Fund
You never know when a financial emergency will arise, so having a backup plan is important. Remind your child how important it is to have an emergency fund, and if they don’t have one started, create a plan to start one.
Be Careful With Credit Cards
Credit cards can help you build a good credit score if they’re used wisely. Many mistakes are made when it comes to credit cards, but if you use them the right way, they can be very beneficial. Make sure your child knows to limit the number of credit card accounts they open and to always pay in full each month.
Know the Importance of Budgeting and Saving
Not only will a budget and savings account help your child keep their spending in check, but it will teach them valuable lessons about self-control and patience. As badly as they might want to spend what they earn, help them understand why investing in their future is so worthwhile.
Leaving for college is a big and exciting step in your child’s life. Helping them to prepare financially will benefit them and also give you peace of mind. We hope both you and your children will benefit from being reminded of these simple, yet effective financial tips. If you have any questions about our banking services, feel free to contact us – we’re happy to help!
