College is a great time for most students, before they head out into the 'real' world, and while students are learning in class, there is also a chance to teach them real life lessons.
Emily Yamanishi is doing just that. She's in college and knows how tempting it can be to forget all about finances and rely on mom and dad, 'In college, because there's that sense of freedom, I think kids can overspend.'
So she got a job, set up a budget and followed it. It's a lesson certified financial planner Phil Cook says Emily will benefit from for years to come, 'The budget for a student is the holy grail they must live with day in and day out and if they don't and they blow the budget and miss two or three days of meals they'll probably take that lesson to heart.'
And it can work, especially if parents have the 'money' conversation with their kids before college even starts, 'Make sure the child understands the bank of mom and dad will be shutting down over the next few years and that they're going to have the responsibility of handling their own finances.'
So what should you do: teach them how to make a budget, and then go shopping together so they learn about spending smart. And while it may be tempting to send your child off to college with a credit card, you should do the opposite, by teaching them to avoid credit cards all together.
This doesn't mean parents can't chip in but Cook says you should consider sending monthly checks so your students can add that into their budget, 'That way if there are any issues, you can identify them early on and work to correct them.'
So that's what we got from the experts, but what about Emily? She has advice for college students, 'You're not spending more than you can afford and you have to know how much you can afford.'
We've found some budget worksheets to help students balance their books while hitting the books. Check the worksheets out at the links attached to this article.
