How to teach your college student how to budget
Education Data Initiative: College students spend an average of $450 a month on meal plans alone
(InvestigateTV) — The College Board reported that college students spend between $16,840 and $25,140 per school year on living expenses, making good budget planning and money management skills essential.
Michale Joyce with the financial firm Agili said it’s important for students to learn how to make budgets and save up money in the summer each year for each semester of college.
“There’s a couple of big things that always pop out in my mind, and that’s cell phone usage, subscription services and the use of ride shares,” Joyce explained. “Those prices can really add up over time and you may not even realize it.”
Joyce reminded parents to talk to their college students about the convenience costs of services such as DoorDash and ride shares. Those fees can add up quickly – make sure they are looking at the total bills each month, so they can learn now how to cut back.
Joyce also urged parents to talk to about credit cards.
“The credit card companies, that’s where they first get their hooks into customers, they want to get the college students,” Joyce said. “They make it very easy for them to sign up for credit cards and they can get in trouble.”
He suggested having a real conversation with them about walking or biking the mile, instead of getting a rideshare, on campus.
Is there a cheaper data plan for their cell phone? Can they drop a subscription service?
Joyce emphasized the little expenses can add up quickly, and this is the time to learn that.
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