Last year, over were expected to attend American colleges. And, with the average cost of a regular college education being over $24,000 each year, it’s vital you discuss finances with your child before they go to ensure they fully understand what they’re getting into.
From living expenses to even paying for college themselves, there are plenty of monetary matters your college-bound kid will need to grasp before heading off for the experience. For you as a parent, you’re bound to have as many worries as your child before they leave especially if it’s their first time living away from home. So, to ease both your minds about money and general college survival, here are some top money lessons to teach your kids before they fly the nest!
Encourage them to earn their own money
At least 6 months to a year before they leave for college, encourage them as much as possible to get a proper job. Whether it’s simply just a weekend job or evening store shifts outside of school hours, earning their own money will not only teach them what it’s like to live in the real world but will also teach them the concept of saving for college.
Whilst it’s likely you may have to help them out financially for college, if they’re able to save a fund for themselves it will be extremely useful for both them and you. School supplies, books, dorm rent, and travel are just a snapshot of potential college expenses, so it’s important they learn to take responsibility too and getting a job is a great way for them to get started.
Discuss credit
College freshman are often inundated with credit applications which, for a broke student living away from home for the first time, can be extremely tempting.
Before they go, make sure to discuss the concept of credit with them at length to make sure they don’t make stupid decisions. Show them how to use a credit card responsibly and introduce the concept of
loan consolidation assistance too so, if they ever get themselves into debt, they’ll have an idea of the best way to solve it.
Teach good spending habits
If your college-bound kid manages to get a job a few months before they go, it’s likely they’ll get a fair bit of cash in their pocket. But it’s essential they don’t go crazy and establish sensible spending habits to prepare them for the world of college.
One of the best ways to achieve this is encouraging them to use an online banking app to track their spending. After all, in today’s smartphone-obsessed world, surely your teenage kid won’t say no to downloading a new app!
Whilst college is often considered an important life experience for most kids, it’s also very expensive and daunting. But as long as you teach them essential money-management lessons and encourage them to get a job and control their spending, you’re setting them up in the best way you can to take on the real world.
No comments
I love reading your comments!