Teach college students to manage finances

Most high school graduations are over, and high school seniors are getting ready to leave the nest and embark on the next chapter of their lives.

For many graduates this means college. Sending a student off to college without the proper financial tools is scary. In college, it’s easy to be persuaded by other students; however, given the right tools, your college student will do just fine with money management. Whether staying close to home or heading across the country, every college student can apply these tips to be wise with money.

How to write a check

I’m a firm believer in teaching teens how to write checks. There are still certain items and establishments that will require a check. Although it may seem like a lost art, it’s not. Do not be shy about teaching your student in this area.

Open a bank account

It is hard to manage money if you do not have a bank account and know how to use it. There is something satisfying about knowing your student knows how to use a bank account. Teach the ins and outs of balancing a bank account — and only using money if it’s in there.

If your child is young, get started now! Help set up a savings account, teach how to fill out a deposit slip, and let your child do his own transaction. Another tool my preteen son uses is his own debit card. Greenlight is a debit card for kids that parents can manage from their phone! This is a great way to teach your child about finances and still have flexible parental control.

The Greenlight debit card lets parents pick the stores where their child is allowed to spend money. Any other stores will decline the card. That is why they call this card Greenlight; parents have to give the “green light” for them to use the card.

As your child learns and grows, you can also allocate money to be used anywhere. My son took both his grandmothers and me to dinner for Mother’s Day and used his “spend anywhere” money to do so!

Cash is best

In college, it is so tempting to open credit cards and take out student loans. What college students don’t realize is that paying interest on those items is never any fun. Teach your child how to use cash from an early age. While credit can be nice, especially for emergencies (like car repairs), it is not always nice to your budget.

Wants versus needs

This is a big one for our college-age children. In college, your student will come across a lot of people who live above their means. When it comes to college, it really needs to be all about needs before wants. He may want a fancy pair of shoes, but only has the budget for a $20 pair of shoes. He may want the latest version of the iPhone, but does not have money for it. Teach that saving is always the best policy. By taking the time to actually save for the item, you student may realize he does not actually want the item by the time he has enough money for it. This is what usually happened with my son.

Work to earn

A lot of college students go into debt because they do not want to overwhelm themselves while they go to college. Working just a few hours per week can keep your student from falling in a financial hole. This is a great way to teach your student to manage money. Using their own money and not yours really helps drive home the point of money management. With a course load of 12 to 15 semester hours, I worked as a football manager for the Georgia Southern Eagles. In addition to a scholarship, this allowed me to pay for the majority of my four-year college degree.

Be willing and ready to teach your college student to better manage his or her finances. A little money management can go a long way!

Melissa King is a professional savings blogger from Savannah. Contact her at melissa@thismommysavesmoney.com.

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