It’s move-in month! Millions of students are starting college for the first time and for many of them, finances will be a big struggle
Credit cards, student loans, and debt are major challenges for college students. But parents can help them avoid financial ruin by having these key conversations.
First, financial experts recommend talking to them about spending and figuring out where they can make cuts to save more.
“What gets measured gets improved. Even if you have caviar taste, as long as you’re tracking it, you will get the information to make adjustments yourself,” said Alok Deshpande, Smartpath Financial.
Second, experts say teach them how to invest money early.
“You can start at twenty-one even contributing to the match in your retirement plan, ten years later you’ll look and say oh my goodness I’ve got $50,000 or $100,000,” said Deshpande.
And third, emphasize the importance of managing student loans and controlling their credit use.
“When the bank allows you to have credit, the lesser you use, the higher the credit score. It looks like you’re more responsible with it,” said Deshpande.
Finally, discuss how to negotiate. Experts say if the art of deal-making is nurtured early it can translate to future financial success.
It’s a good idea to review their bank accounts now before the year really gets underway and save the information.
Then compare it to their finances at the end of the semester, that’ll give you a gauge of how much you’re spending – so at the halfway point you can reel in any unnecessary spending.