Tips to Make your Kid Financially Ready for College
Is your child “ready” for college? The freshman year of college is not solely about exploring academic inclinations, meeting new friends and discovering professional potential. In most cases, college is the time when your kid actually learns to manage money on his own. College or university might as well be the time when your child actually gains access to adult finances. From understanding quick cash loans to mulling opportunities of financial freedom, there is – at once – a lot which your child needs to learn about money while he is in college. Here are a few tips with the help of which you can actually help your child become financially fit for college or university.
Financial Freedom
First things first. We have already mentioned financial freedom once here in this article. Your child might as well access a quick cash loan to pay a semester fee when he is totally running out of cash or choose to work for around 10 hours a week (a part time job) and not only have his needs fulfilled without the help of these loans but also bolster his productivity, time-management and organization skills. Your child can either put the money (thus earned) as savings or fund occasional needs like paying to do the laundry. By encouraging them to earn money thus, you will actually help your child allocate his earnings. And, effective allocation invariably teaches him/her to establish a direct link between money earned and money spent.
Avoid Education Loans
In fact, there are a few financial experts who also opine that you should also try not to fund an expensive college experience—if you think that you will not really be able to afford it at any cost whatsoever! You should avoid taking out education loans if you can avoid it. Parents often commit the grave mistake of taking hefty loans without really ascertaining whether at all the loan will actually translate into equally promising income in future or not. Here once again, experts have urged parents to encourage their children to find part-time jobs for themselves. This can help them achieve the right balance between budget, time and money. It is also a good idea to start a credit card under the child’s name so that he ends up understanding the true meaning of good credit history.
Make them Understand the Value of Budgeting
Help you kids understand the consequences of mismanaging their money. You might as well help them prepare the budget initially – then let them take it from there. Then it’s your responsibility to leave the job of maintaining the budget to him or her. If he/she has over spent – so much so – that he/she has to run the last few days of a month on Ramen instead of proper meals then just let it be. Let them struggle with their finances so that they understand the true impact of financial mismanagement.
Are they Exploring Career Opportunities?
Besides helping your kids handle “immediate” cash needs, you should also encourage them to discover their passion so that they can take it up as a career in future. Make sure your child is duly exploring campus opportunities, turning to professors whenever needed and developing a thorough understanding of the cyclical job market.
