Guide Your New College Student on Budgeting Basics

Your student has a summer job – but rather than letting him or her fritter away their earnings, work with them to start crunching numbers for the first semester of  college! You likely have planned for tuition and books, but what about the little things?  Late night pizza study sessions, athletic equipment, phone bills and extra fees are just some of the many things that get over-looked when planning a fall budget.

This is where planning is essential! Sit down with your student and show him or her how to plan and manage a budget.  (Excel spreadsheets are a handy, low-cost tool.)

·         Determine how much of their paycheck should go towards college expenses each pay period.

·         Have your student set up a savings account. Visit your local bank and see what type of account they suggest.

·         Plan ahead for possible major expenses. For example, how old is your student’s computer? Will a new one be necessary during your child’s college career? Will they need new or specialized software?

Keep in mind that as you hand over the responsibility for budgeting to your student,  mistakes will happen. As the summer and school year progress, check with your student to find out how well actual savings and expenses are coinciding with the budget, and make adjustments as needed.