College Student Budget–Reality Strikes
What’s a college student budget? Women over 45, your little darlings have probably headed off to college this year, right? Well, when Junior and Miss Princess head off to college orientation with you, what’s the first thing they hear–“Study Abroad”, “Semester at Sea”, “Unpaid Internship”…. What’s the first thing you hear..oh wait…it’s the sound of the college vacuum machine siphoning away all your hard earned cash! Right after you leave the college orientation is when most parents decide it’s a good time to discus the college student budget.
BACK UP! College Student Budget Education starts at Birth
In our home, we really started our children’s financial education for responsibility the minute they were born. “Saving for College” should be a regular topic that your children hear and “Financial Responsibility” and “Budgeting” shouldn’t be foreign concepts to them either. “Frugal” shopping, “Thrift Stores”, “Garage Sales” are all words that they should not be embarrassed to utter, but embrace with the sense of savings and adventure that can be achieved. Once you have your children, yourself and your spouse in the right mindset..discussing a college student budget becomes easier.
Elements to Consider in a College Student Budget
1. Each Child is Different–One child has had a job since the 8th grade, the next has never had a job except one summer for a few weeks at a fast food restaurant, the next child works every summer doing hard labor for his coach, and the finally one is a pre-olympian of sorts and spends every summer in training..never having worked a summer job. In college, one child can carry 17 credits, two jobs and balance a social life. The next has a girlfriend, is studying a medical related subject and works 20 hours a week. Another child finds 12 credit hours difficult to handle without even considering a job. Then another child carries a full class load, all the while working and planning for his master’s degree approach. The key lesson here is each child is different and so must the approach to a college student budget for each child be different.
2. Different people, Different expenses. One child may need a bike, a gym membership, and a full meal plan to make college life work for them. The next may need to live at home for a few years to get themselves established. For some, the Sky is the limit as they absorb all the different opportunities around them. Or so they think…the budget my dictate differently.
3. Different Colleges, Different Majors, Different Expenses. Some colleges will have many hidden fees, new editions of books, and outlandish trip related expenses that must be met in order to accomplish a degree. Other colleges are simply in expensive locations rendering the room and board more expensive. Other college majors may require a number of internships, often unpaid.
While the list of considerations can go on and on, the tools for helping your student budget and teaching financial responsibility have to start at home. 57% of the parents who have children in high school/college feel that schools deserve failing grades in teaching children financial responsibility, according to a recent American Express Survey. In my personal opinion, it’s not the schools responsibility to teach a child about home finances. That job lies with the parents.
What tools can you utilize when helping form a College Student Budget?
1) Pursue Scholarships. Whenever there is an opportunity for awards, get your child applying!
2) Have the child get a job. Studies have shown that children who work 12 hours/week during college have better grades then those who don’t. Encourage or require your child to get a job to pay part or all of their own way. When a child invests in their education, I have observed they take everything more seriously. For example, if you have the child pay for their own books…all of a sudden the child is an expert on text book buying sites like Amazon.com, textbooks.com, and the local discount used bookstore.
3) Consult the experts. You don’t have to come up with all the ideas yourself. There are many great reference sources out there to develop your college student budget. For example, in order to better prepare parents with resources and tips to better educate their teens about responsible college spending, American Express, coupled with financial expert Jean Chatzky and Mom Central Consulting’s Stacy DeBroff, decided to launch the Safe Spend program. This program was conceived to help parents instruct their kids in how to “Practice Safe Spend , this financial awareness program offers great suggestions to make discussing the importance of money management a little easier. They offer smart solutions that you may not have considered like giving your college student an American Express Additional Card with Custom Limits. To read all of the “Practice Safe Spend” tips, please visit: Mom Central Consulting on behalf of American Express and received a promotional item to thank me for taking the time to participate.”
Sherry Compton says
Kids are going back to school, and those going away to college do have a lot to think about. With their studies and the new college life to get used to, money isn’t something they worry too much about until they are in over their heads. I like your idea of sitting down with them and discussing a budget. Great tips…each child is different. Talking over expenses like fun, home, and extracurricular can help them. Help them work out a budget idea and then add that things always pop up.
Amber Ludwig says
I worked two jobs while going to college and caught so much flack from my professors! I remember thinking, In a perfect world buddy trust me lol 😉 I think being able to juggle school and a job is important in learning time management and responsibility to be honest!! Plus it helps with expenses and gets them to learn to manage money 🙂
Crystal Rogers Walker says
I THINK IT IS SO IMPORTANT FOR COLLEGE STUDENTS TO HAVE A BUDGET TO KEEP ON TRACK AND NOT TO HAVE TO WORRY ABOUT GETTING BEHIND
Kimberly Harbour says
My parents taught me how to manage my finances at a young age and I thank them for that. These are some great tips I can keep in mind when teaching my son!
Lisa Ehrman says
These are very good tips. My last child is now in college, so I think we’ve tried them all 🙂
Jane Ritz says
I’ve lived through this. College years were tough being a single mom with 4 kids. Your article is great.
KATHARINE COOKMAN says
I AM A FORTUNATE MOTHER MY KIDS LEARNED HOW TO WORK WITH $$$ EARLY IN LIFE SO THEY ARE VERY READY FOR LIFE ON THEIR OWN ????????????????????????
Sarah L says
My folks were excellent about instilling good money habits from a young age. Their advice is still good today.
Michele Ash says
Thanks for the Fantastic Review on Helping Your College Student Budget, Teaching Financial Responsibility! My kids aren’t nearly ready for college yet. My oldest daughter wanted to go to college and had to get loans and all that stuff and she commuted. I don’t think she even lasted a year in college! I just knew it was not right for her. She is a “hands on” learner! She went to Beauty School and loved it! She passed with flying colors and now is a hairdresser. We had our other 2 children later in life and they are still young that college is a far away thing. Also, my 2 grandchildren aren’t even in school as of yet (well preschool) and it’s a long time for them as well! I had enough problems with my oldest daughter and college! So, I’m so happy it’s far off for the other 4!!! I never went to college either because I knew my parents couldn’t afford it and I took all business courses in high school and was working in an office while in high school. I just stayed in the business end of things after that! Thanks so much for sharing your fantastic review and your personal and professional opinions on Helping Your College Student Budget, Teaching Financial Responsibility with all of us! I honestly do appreciate it! Thanks Again! Michele 🙂
Shannon says
Thanks for sharing all of these budget tips.
chrissy c says
Thanks so much for sharing. These are ideas I will be talking with my kids about!
Barrie says
These are some great suggestions. My teen needs to learn more but we’ve done some money budgeting with her.
Shannon says
Thank you for sharing this post. I wish my high school taught us more about this.
desiree says
i now the cost and my gf got 2 grand kid one has full scholor ship to private school and she all ready got her a ba so she going to go furter but they can not leave the campus
rochelle haynes says
My child need to learn how to budget she is in college
Sherry Compton says
Schools often aren’t helpful in preparing. Kids come away without the financial life knowledge they need. Colleges have so many costs too…tuition, room, food, books…kids and adults can easily be overwhelmed. Sit down with them and discuss costs and how it will be paid for. It’s important to get everyone on the same page and to help them understand how to be responsible with money.
Gail Williams says
As you mentioned, high schools are not being very helpful in teaching financial responsibility to students, so it has to be up to the parents to give those students a reality check starting early with allowances, saving money, getting small jobs, etc. Then the learner doesn’t expect money to be handed over to them, they earn and learn…get loans and the parents can guide and help.