If you are a frugal family, it is probably important for you to pass these values on to your children as well. The first big test for many children
that will be when they leave for college. For the first time ever, they’ll have to figure out how to make their funds last while paying for the things they need and at least some of the things they want. This may be the first time they’ve really had to think about a budget. With the tips below, you can help your child learn to save money.
Pay for school
First of all, you need to know how much money your child will have for school. School is expensive, so even though there is financial aid, scholarships, and grants, it may not be enough to cover tuition, accommodation, and meals. One option is for you to take out a low-rate Private Parent Loan. It can help you take care of your child even if you don’t have a lot of savings to cover college fees.
Tuition fees are a fixed expense. Other expenses depend on the situation. It will be much easier to budget for room and board if your child
spend at least the first year living in an on-campus dormitory and eating the school lunch plan only if they live off campus and are responsible for their own food. In the latter case, if they do not yet know where they will be living, the college can probably provide information on average rents in the area and other costs of living. You can use this information to help your child take the next step – budgeting.
How good is your child for money? It’s a good idea to take money tips and be an example of how your kids develop their relationship with their finances. While you probably have a good idea of whether your child is thrifty, a spendthrift, or something in between, this will indicate how you will approach this process. The first step is to take the information you have about spending as well as how much you know your child will need to spend each semester and figure out how to allocate those funds.
A strict budget isn’t necessary if your child is more or less inclined to stay within spending limits, but you might want to dig deeper.
if they tend to be careless or very frugal with money. In the latter case, using an app to track expenses and help them budget can ease some anxiety and let them know it’s okay to splurge every now and then. In the first case, an app may offer a simple warning that it is approaching its spending limit in a given category.
Talk about credit cards
You need to have a discussion about credit cards because they can be the downfall of many students. Offers can come fast and furious,
and your child may not realize how easy it is to get into high interest debt. You might want them to have an emergency card, but if you are afraid they will misuse it, you can make it a prepaid card or just get one with a low limit.
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