Congrats! Your high school student is ready to head off to college. Now, it’s time to prepare them with a college budget that accounts for textbooks, housing and other necessary expenses to lessen financial stress and create smart money habits for the future.
Have “the talk”
The money talk, that is. Before building a budget, it’s important to discuss who will fund your student’s education and how. Be sure to discuss both the expected and unexpected expenses while in college, such as acquiring student loans, paying for transportation, purchasing school supplies and more. Additionally, you’ll want to stress the importance of opening a checking and savings account for easy access to money, along with how to manage a credit card account if they open one.
Track your spending
Although your student may be receiving supplemental funds from family, a side job or financial aid, be sure they know how important it is to know how much money flows in and out of their accounts each month. Set some time aside each month to help your student review their spending. Once they begin to identify their needs and wants, they can develop smart budgeting and saving habits.
Think of their future
Keep your student’s future in mind as they journey through college. Help them build a cushion by setting financial goals, such as saving toward an emergency fund or for their next big trip.
Remember not to burden your student, but instead help them grasp what kind of lifestyle they can afford to live in college while also preparing for the future.