Going to College - what to share with them before they leave the nest

College, the start of independence. Making more and more choices on their own. Mommy and Daddy aren’t looking over their shoulder anymore.

This is the time to witness everything you have taught your child and hope it all pays off. You have set a great foundation on money matters and now it is time to see them follow through on the suggestions/values/ideas you have given them.

By now your child probably has their own checking account, they have been earning money and may even have an idea of what they want to do for a career and what that job will give them in salary. If you as the parent are helping out with costs such as books or room & board, then from the beginning set out each persons responsibilities. For example, if you said you would pay for food then set a budget each month. Don’t allow your child to just spend whatever they want, they still need to follow some set boundaries especially if it isn’t their money.

In college, your child will be tempted to apply for credit cards if they haven’t already been approached to this. Educate you child before they leave on how a credit card works and how it effects their credit report. If possible allow your child with 1 credit card, they don’t need more then one.

One more point. Friends might ask to “borrow” money. Teach your child that other children may not understand the value of money like he or she does so use caution when someone asked to borrow money.

As always, you are still their “financial coach” during this stage. Encourage them to call home with any questions when it comes to their finances during school.

Save your coins, Susie Saver

P.S. Email Susie and tell her what you want to learn about at: susan@susiesaverbooks.com

Financial planning lessons are posted two times a month. Next lesson on, “Should you tell your Child how much you make?”.

Setting up Saving and Spending Accounts for Teens

Teenagers seem to have a good handle on how to spend, especially other people’s money. But it is our job to teach them to save and spend their “own” money. It’s time to introduce a savings account.

From birth until the end of elementary school a piggy bank is all your child needs to learn the concept of protecting the money they saved. Now they are in Jr. High, receiving a larger allowance and need a safer place to keep their cash, a savings account.

Take your child to the local bank and help them open up their savings account. Explain to them that this account replaces their piggy bank. They should keep a record of their deposits and withdrawals so they always know what their balance is. In addition, at the end of each month, they may even earn some interest on their deposits. Teach your child that this savings account is where they go to deposit their allowance or money from other resources. When they want to buy something they come to this savings account to make their withdrawals.

This is a very important step in introducing the banking system because soon enough they will transition to a checking account and need to know where that money is coming from when they write a check out.

Save your coins, Susie Saver

P.S. Email Susie and tell her what you want to learn about at: susan@susiesaverbooks.com

Financial planning lessons are posted two times a month. Next lesson on, “Going to College- What to share with them before they leave the nest”