College is a unique experience. For many 18-22 year olds, it is the first time they’ve been away from their parents for an extended amount of time. This means it’s a crucial point in how they think of and use money.
As many of you may have sent your child to campus for the first time, we want to discuss the types of financial support you could offer to your child in order to help educate them on money management while at the same time ensuring their needs are met.
Here are a few examples of college expenses parents typically help cover and those that they let their children pay for in order to gain some real world budgeting and financial experience.
Parents help cover the cost of:
Tuition, room & board (if on-campus), meal plan– these make up the bulk of the costs of going to college. Most of what you have saved to help your child pay for college goes toward these costs
Textbooks– the prices of textbooks have skyrocketed. While your college student may be able to find used or discounted versions, they may have to purchase one or more books that are $100 or more.
Necessary room furnishings– notice the word “necessary.” A desk lamp and towels make the cut; a 60-inch TV does not.
Emergencies– cars break down, bodies get sick, and people get injured. When it comes to your kid’s health or ability to get to or from school, lending support the way to go.
Let your children grow financially independent by paying for:
Having fun– there are plenty of ways to have fun for free, so anything that costs money can be up to your child to pay for.
The latest technology– outside of a computer, which is a necessity for college anymore, any additional technology purchases could fall on your child’s shoulders.
New clothes- it’s okay to help with this, but above what’s needed, could be your child’s responsibility.
Pizza on Friday nights– or going out to eat in general. If your student has a meal plan and chooses not to use it, then those additional costs can come out of your child’s pocket.
What other costs would you add to this list?
College is an important time when it comes to developing financial habits. Cutting financial ties a little bit and letting your child support themselves is not a bad thing. Remember the sink or swim analogy; you can let them flounder a little to help them learn, but let them know you won’t let them go underwater.
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