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Most college students begin college without knowing a whole lot about how the financial world works. It's not really taught in school, so we can't blame them! Here are a few things to go over with them before they pack their bags.
- Credit Cards are dangerous. Credit card companies fiercely target college students. Talk to your child about how to understand interest rates, payments, and debt.
- Student loan money is not free money. When an 18 year old gets that check in the mail they think, "I'm rich!" Remind them that they have to pay every penny back plus interest. Student loan debt is a huge load to carry in your 20's and 30's. Build a plan where they can take out the minimum amount they need.
- How to budget and prioritize your spending. There are tons of apps and blogs about budgeting, find our blog on budgeting here. But nothing beats sitting down and drafting a plan together. They might need a lesson on what things truly cost!
- What is credit and why is it important? Building credit at a young age is super beneficial for when they graduate. Teach them how to build credit and why it's important. Some young adults have no idea what credit is or does. Here is our blog on credit.
Let us know if we can help start these conversations with your student!
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