As students set off for college, for many it is the first time they are responsible for their own finances. It is important students learn smart spending and saving habits as they begin their college career because often these habits will follow them into later adult life. Check out five ways you can start teaching your student smart spending habits:
- Start a budget: College freshmen likely will have a fairly fixed amount of spending money and fixed expenses. Teach your student how to set up a budget with their income and expected expenses. Set up their budget with their fixed expenses so your student knows how much money they will have to spend or save.
- Take advantage of mobile apps: There are hundreds of apps available for money management that your student can take advantage of. Your student’s bank or credit union also has a mobile app that can make their life so much easier. With a financial institution’s mobile app, your student can deposit checks, check their account balance and transfer money at their convenience.
- Teach responsible credit card habits: It’s important your student understands the importance of good credit and does not rack up credit card debt while in school. It’s important your student knows that their credit will follow them for years and may affect their ability to rent an apartment or finance a car.
- Apply for scholarships: College tuition and living expenses can be expensive. But there are tons of scholarships available that can help reduce the cost of college.
- Open a student geared checking account: Many banks and credit unions offer checking accounts that are student friendly. Accounts with no minimum balance and no monthly service fee are optimal for college students.