Money 101 for Soon-To-Be College Students

There comes a time where children have to take responsibility for their lives and learn how to handle their own essential aspects, including financial matters. Ideally, teenagers and young adults should grasp certain concepts before going out to college, away from their families. Otherwise, the initial shock will be too big and they will be very likely to make big mistakes during the first years away from home. To prevent this from happening, parents should teach their children above anything else, some financial management basics. Keep reading below for a short introduction into the matter.

Teach them how to track their cash-flow

Although budgeting has to be a monthly habit in adults, for college students it’s a great idea to teach them to do it on an academic period. To thrive, they should get a better grasp of all the money they expect to receive during a semester, be it from refunds or financial aid, or from you, their parent, or even a job. This will offer them a clear picture of how much they can afford to spend on a bi-annual basis and it will allow them to break down and budget more carefully, knowing exactly how much they will have to spend in advance. Teach them about innovative ways to boost their monthly income. For instance, you could familiarize them with platforms where students can upload their college notes for others to use, in exchange for money. There is no limitation on what type of courses you can upload notes for, there is even arc1720 UF course support on similar platforms. 

Teach them to effectively track their spending habits

After you train them in the cash-low mater, make sure to teach them how to track their spending habits. Encourage them to take a look at their monthly spending and invite them to pay closer attention to where the money goes. They will have a shock when they will observe how much money goes on unnecessary things. Encourage them to be more selective and attentive in their money-spending rituals. Seeing how much money goes on unnecessary things will surely be eye-opening for many soon-to-be college students.

Teach them to differentiate between wants and needs

This is a habit that not even most adults have: differentiating between wants and needs. Teach them how to categorize their spending into two classes: necessary expenses and wants. Obviously, the needs should include things like housing, transportation, food, school gear and even clothing. Wants may be anything that doesn’t fall into the previous segment, from concert tickets to restaurant outings, and so on. Expenses that fall into the last category should be carefully analysed and postponed until the others are cleared out and paid for. Financial trouble is waiting at the door if this is not their approach.

Financial responsibility is a skill that, unfortunately, many college students have. early education and guidance on the matter will save your child from many headaches in the future and will help them deal with debt and necessary expenses more responsibly.