Fall Semester is here for College students.  Your high school graduate is starting the next step of their journey to becoming a self-sufficient adult.  That is the goal, right?!?!?  😊

As parents we want to make sure that our children get off to a good start and are set up to succeed.  We spend time making sure they have everything that they need (and even some things that they don’t) including the necessary school supplies, last-minute advice on not partying too much and hitting the books.  But one of the most important things that college freshman should be equipped with is the basics of personal finance.  Think about it, this is the first time that most of them will be put in the position of making real financial decisions that will impact their future, so teaching them the basics of money management NOW is important.  Now is the time to start helping them build good money habits.

There are 4 areas that should be covered when reviewing the money basics with your student: Debt, Credit, Budgeting and Saving.  Below are a few important points for each category that should be discussed.

Debt (Really focus in on the cost of student loan debt and credit card debt.)

• What Debt Is
• Types of Debt and How to Manage
• Future Impact of Debt (Cost and delaying other priorities.)

Credit (Really focus in on how credit scores impact future finances.)

• What Credit is Used For
• Credit Score
• Impact of Poor Credit Decisions

Budgeting (Really focus in on the importance of assigning a job for every dollar.)

• The Purpose of a Budget
• What’s Included in a Budget (Income, Expenses, Money Goals)
• Ways to Budget

Saving (Really focus in on preparing for future financial priorities.)

• What to Save For (Emergencies, Large Purchases, Retirement)
• The Importance of Saving Money
• How to Save

Giving them real life family examples when discussing, will help them to understand how it applies.  Helping them set up and use a budget even while in school will be good practice for when they graduate.  Equipping them NOW with the money basics will help them avoid for the most part, the trial and error method of money management.  Now I’m not saying there is anything wrong with some trial and error, but it should be kept to a minimum.

If you are not sure how to have the conversation or would like a more structured approach, click the link to get information sent to you on our College Money Management Workshops.