Do you have a financial plan for your student at college? Are they going to save money to live on? Are you giving them an allowance? Do they need a car and gas money? Should they have a credit card? These are important questions, and it is equally important that you have the answers before your child goes off to college.
I know several different ways that parents deal with this issue. Some students just use a credit card for all of their “needs” (and wants) and mom and dad pay the bills. Other parents send their children weekly or biweekly or monthly checks or account transfers. Have you decided what YOU are going to pay for, and what your student should either pay for or budget for? If your student is in a dorm chances are they have room and board. How will books be paid for? Incidentals? Social activities? Sororities? Frats? Clubs?
My husband and I decided it was important for our children to learn to budget so we decided what would be paid for by us and what we would not pay for beyond the allowance. Both kids had/have a credit card to pay for books and to have on hand for an emergency. Any charges on the card that are not on the approved list of covered expenses comes out of our child’s allowance (like itunes…we do not cover itunes purchases on the credit card). The allowance our children received/receive covers all expenses outside of books, room, and board. It is their job to make that money last. So far, so good. Our firstborn had more issues than our second…at least to this point.
I urge you to purchase a book or guide to teaching your teen/college student about financial planning. You can access a great list in my store by CLICKING HERE. There are several excellent books and guides regarding this issue. You can also ask friends about their strategies, but in the end, it is important that you have a plan, and that you are comfortable with it. It is a good idea to start teaching these skills BEFORE college….how about the junior and senior year? No time like the present!
