Since my daughter is still in college, she doesn't have a car-instead, she rides her bike or takes public transportation. Budgeting is iterative, and trade-offs are necessary. If the expenditures are bigger than the income, bluntly tell your son or daughter that it's time to cut back on spending. Set a reminder on your calendars to review your student's budget each semester. Encourage your student to regularly check their bank accounts-including their checking account-online. Once you both understand the income sources, the next step is to list all expenditures-everything from mandatory expenses like college textbooks to discretionary costs, like tickets to on-campus football games- in a budget template, which can be downloaded. Talking about the income side of the budget equation requires a frank conversation with your college-age child about what money he or she will be receiving while in school, including allowances or monthly stipends you might provide, college loans, scholarships and grants, and their own part-time wages. It may sound basic, but the truth is that many young people flounder financially simply because they've never been taught how to budget.
The most important rule of budgeting is to never spend more than you earn. The first step in teaching your son or daughter to set a monthly budget is explaining that it basically has two parts: income and expenses. Calculate all income sources and expenses To help with your conversation, here are 5 essential things your student must do to create a monthly budget they can stick with in college-and beyond: 1. If you have a child in college or a teen who's heading off to school, now is the perfect time to teach them vital money lessons. As her mom, I'm thrilled that many of the financial lessons I've shared over the years have taken root. She's super excited about using her marketing degree to find a new job-and a good salary.Īziza recently told me that once she starts working, she plans to "keep living like I'm a college student, and saving as much as I can." That was music to my ears. Now that she's a senior and will soon start working full-time after graduation, our money talks have become even more important. When my oldest daughter, Aziza, prepared to go off to college for the first time, we started talking about budgeting. The 5 essential things students must do to set a budget-and stick to it
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