Is your child ready for college?
He scored at the top of his class in high school. She was involved in all the extracurricular activities. He started applying to colleges early. She never missed a day of class. They sound like they’re academically prepared, but do they know how they’re going to pay the bills, rent, loans, and still have some money left over for fun? How are they going to pay back the loans they signed off on once they graduate? Do they understand the price of their investment?
Student loan debt recently went beyond the nation’s credit card debt. Not only that, according to The Denver Post article, “Spending 101: How to give your university-bound kid a handle on budgeting for campus life,” 80 percent of college students have credit cards with an average of $3,000 in credit-card debt.
The college transition brings huge lifestyle changes. Students are advancing to higher education and possibly moving out of the house, moving to a different state, leaving behind old friends, finding a new job, looking for roommates, and on and on. On top of all this lifestyle change, they are also going to be required to manage their money to pay for groceries, utilities, rent, and entertainment. They also have the ability to take out more loans. Do they know the interest? How many years it’s going to take to pay back?
Parents and educators can start talking to kids about finances before they even reach elementary. Personal money management shouldn’t be a new concept to a college freshmen.
LifeBound’s new book Dollars & Sense: How to Be Smart About Money is a financial literacy book for teens to teach them the financial skills they need to assess wants and needs, make a budget, accept and deny financial aid, make early investments, and set long-term goals. Dollars & Sense will be available September 2011.
Porter, William. “College Spending 101: How to give your university-bound a handle on budgeting for campus life.” August 23, 2011. The Denver Post. Accessed on August 23, 2011. <http://www.denverpost.com/search/ci_18734900>
“College student debt grows. Is it worth it?” May 16, 2011. NPR. Accessed on August 23, 2011. <http://www.npr.org/2011/05/16/136214779/college-student-debt-grows-is-it-worth-it>