Showing College Bound Kids How to Be Financially Responsible

You’re about to send your not-so-little one out the door and into the waiting arms of the college lifestyle. The prospect is probably a little scary, especially if you don’t necessarily trust that your child completely understands how important fiscal responsibility is, not just in the “real world” (which is a place where, theoretically, your child will enter after graduation), but during their college days as well. This means that you’ll need to guide your child through the process of becoming a financially responsible adult before they leave for school.

Allowances, chores, and jobs … oh my! Many parents have allowed their child to earn an allowance since the time they were wee. If you haven’t ever played the allowance game with your college bound kiddo, there’s no time like the present. Require that they earn their keep by undertaking every day household chores, such as taking out the garbage, doing the dishes, tidying up common rooms that all family members share, etc. Or you can require that they obtain a real, outside the house job. A child that earns their own money comes to value it much more than if it’s given to them for no reason.

Practice budgeting. Once you and your child have established a routine, either by helping them earn their own money through chores, a job, or a combination of both, help them develop a budget to figure out their monthly expenses. This budget shows your child what they spend their own money on, including gas for their cars, entertainment (like going to the movies), eating out for dinner with their friends, and shopping at the mall. Model appropriate budgeting by showing them what your monthly budget looks like so they can compare. This may be an eye opening experience for you both.

Set up a checking account. Before they leave for school, help your college bound child set up their own checking account with money that they have earned and saved themselves. This also means that your child must understand that any overdraft fees will be their responsibility to take care of, and not yours. You might also find a place that offers debit cards that do not allow overdraft fees; that is, as soon as the money is gone, it’s gone. The card can be easily reloaded, but that’s up to your child.

Setting up a savings account. Your child will learn about the value of saving if you require that their checking account also be linked to a savings account so they can begin socking away money for a time when they can begin to apply for the top online masters in nursing programs (or whatever programs suit their fancies). Just remind them once again that, while it may be tempting to dip into the savings fund, once it’s gone, it’s gone.

Credit cards. This is a dangerous option to undertake, but one that, if handled properly, will teach you the true value of a financially responsible life. Just make sure your child understands that the money must be paid back … and on time!

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Hollie

Hollie is the owner and coordinator of Real Moms Real Views. She loves spending time with her family which consists of her handsome hubby and three kiddos ages three and under. She loves her fur baby (dog), the smell after it rains, red nail polish, chick flicks, and anything chocolate!
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