Off to College? (Make More Cents)

I have a long way to go before my little ones are on their way to college. Heck, we have to get past Kindergarten first!

Take a moment to read this great article from Chris at Make More Cents.

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Money Basics for the College Bound 

Many parents are dealing with the realization that their kids will soon be leaving home and heading off to college.  Once students arrive at college, no one tells them what to do or when to do it; out of necessity, they develop their own personal and financial independence.  

A recent financial literacy survey, completed by the Jump$tart Coalition, shows that only 48% of high school seniors are able to answer basic questions on financial concepts.  This is an alarming statistic for both parents and their children, who are already embarking on a new and overwhelming journey. 

A money management plan with clearly defined expectations can equip your college-bound child with the tools needed for financial independence: 

  • Develop a spending plan.  Many schools offer guidelines for expenses to serve as a starting point for a budget.
  • Define money management ground rules: including credit card usage, discretionary spending, and emergency situations.
  • Limit your child to one major credit with defined spending limits. Credit cards are often a too convenient way to spend and can produce catastrophic results.
  • Establish roles and responsibilities for managing account balances, paying bills and keeping receipts.
  • Ensure that there is a clear understanding of how your child’s personal money (saved or earned) will be used.
  • Stress the importance of safe-guarding his/her personal information.
  • Discuss peer pressure and how that can impact spending habits.   
  • Ensure that your child understands the difference between needs and wants, and how to balance them.

 

A good plan, along with an understanding of basic money management concepts, allows your child to be in control and not let finances take control.  This makes “money” one less distraction from academics and college activities. 

© Chris Hayman

 

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~ by iemommy on April 18, 2009.

One Response to “Off to College? (Make More Cents)”

  1. I love this picture… it has been a long time since we dyed eggs. Welcome to the hunt! My purple is here.

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