Preparing your kids on how to survive life at college financially is one of the most important life skills you can provide them with. Many kids go to college without any knowledge of how to manage their finances and this leads them to fall into a debt trap. You don’t want your children to be one of those statistics so here are some financial tips for preparing them for life at college.
Take Out a Student Loan
Despite all the advice we can give, there is the undeniable fact that college is expensive and you and your children are going to have to find ways to cover the costs. From accommodation to the cost of textbooks, it’s all going to lead to big monthly expenses. There is also the obvious expenditure of covering tuition fees. You want your child to be in the best financial position possible, so you should consider them taking out a private student that will cover all the expenses involved and can do so without the need for a cosigner. A loan is one of the easiest ways to put your child in the best financial position for college.
Budget
Teach your kids how to budget. If there was a list of essential life skills, this would be near the very top. Most adults do not know how to budget properly, and that is because they were never taught. If you give your children an allowance, make them write down a budget which shows how they will use their money and if they can actually afford the purchases they make. They will carry this skill with them into college and will find their financial life much easier.
Do Small Things Now
As well as teaching them how to budget, there are many small things you can do which will prepare your kids for college. This includes being financially sensible yourself. Children copy their parent’s habits and if they see you being irresponsible with money, they will not truly understand the seriousness and impact poor finances can have on your life. Don’t make unnecessary purchases and teach your children how to save their money.
Save On Housing
Student housing can be prohibitively expensive but there are ways to save money. If your kids are spending most of their money on rent, they’re going to have very little left to survive on. This will lead to a miserable existence and even be cause for them to drop out of school. If your children can live at home, consider it as an option.
Drop The Car
For kids going to college is the first part of being an adult and often getting themselves a car is part of that process. Unfortunately, cars can be very expensive to buy and run. If they want a car, ask them to save up for it themselves and ask the question of whether they really need to have one. They don’t want to be that kid in college who has the car and is left giving everyone rides around campus or the city. They might not like this, but it’s for their own benefit.
Leave a Reply