How parents can help college-bound students learn to manage money

If Amazon doesn't have a Whole Foods grocery near you, there are non-perishable groceries ( food that doesn't spoil) that Amazon can ship to you

College students are about to head off to campus. Have you and your student talked about managing living expenses and creating a budget? A grasp of the basics of budgeting and managing everyday finances should (hopefully) help them avoid the cycle of pizza with friends early in the semester and Ramen noodles alone in their room at exam time.

Sound money-management practices are critical since most students receive a loan-repayment schedule along with their diploma. Median student loan debt in Minnesota (June 2018) was $18,401, said the Federal Reserve Bank of New York/Equifax Consumer Credit Panel. You don’t want to add credit card debt on top of student loans.

Many students need guidance. That’s the message in the 2019 Money Matters on Campus report. EverFi, an education technology company, surveyed more than 30,000 college students from more than 440 institutions. Less than 40% of those surveyed had used a budget to manage personal finances. Nearly half (46%) of students surveyed had at least one credit card. Of those with a credit card, a third had a balance of more than $1,000.

There are a number of steps parents can take to help their student manage their money. Among the most important are:

Talk, and talk again

Most undergraduates will make money mistakes. That’s OK, since it is how we learn. An ongoing conversation will minimize any negative impact and help them steer clear of serious money trouble.

Create a budget

There is no shortage of resources to tap for establishing a budget. One place to start is the National Endowment for Financial Education and its CashCourse, a free online resource. Budget-making tools make it easy to develop a spending plan. Plan on revisiting the initial budget after a month or two of campus life.

Pick a high-tech money tool

Many banks and credit unions offer good tools for monitoring payments, alerts when accounts go below a certain level, and so on. Another option is well-known apps such as Mint and Acorns. Financial institutions and the apps offer budget templates, too.

Embrace the debit card

I’m not a fan of credit cards on campus, especially during the first three years of college (if it’s a four-year institution). Credit cards are too risky. A debit card — essentially an electronic check book — is a much better money management choice for undergraduates to use and master.

 

Chris Farrell is senior economics contributor, “Marketplace,” commentator, Minnesota Public Radio.

rn{% endblock %}"},"start":"https://users.startribune.com/placement/1/environment/3/limit-signup-optimizely/start"},{"id":"limit-signup","count":12,"action":"ignore","mute":true,"action_config":{"template":"{% extends "grid" %}rnrn{% block heading_text %}Youu2019ve read your 10 free articles for this 30 day period. Sign up now for local coverage you wonu2019t find anywhere else, special sections and your favorite columnists. StarTribune puts Minnesota and the world right at your fingertips. {% endblock %}rnrn{% block last %}rn{{ parent() }}rn{# limit Krux pixel from https://www.squishlist.com/strib/customshop/328/ #}rnrnrn{% endblock %}"},"start":"https://users.startribune.com/placement/1/environment/3/limit-signup/start"},{"id":"meter-desktop-331","count":10,"action":"ignore","mute":false,"action_config":false,"start":"https://users.startribune.com/placement/1/environment/3/meter-desktop-331/start"},{"id":"PDA991499opt","count":9,"action":"ignore","mute":true,"action_config":false,"start":"https://users.startribune.com/placement/1/environment/3/PDA991499opt/start"},{"id":"limit","count":8,"action":"inject","mute":false,"action_config":{"template":"

rnrnrnrn

rn

rn

rn rn

rn t

rn SUBSCRIBErn Already a subscriber? Log in.rn

rn

All Star Tribune readers without a Digital Access subscription are given a limited number of complimentary articles every 30 days. Once the article limit is reached we ask readers to purchase a subscription including Digital Access to continue reading. Digital Access is included in all multi-day paper home delivery, Sunday + Digital, and Premium Digital Access subscriptions. After the 1 month Premium Digital Access introductory period you will be charged at a rate of $14.99 per month. You can see all subscription options or login to an existing subscription herern

rn rn

rn

rn

rn

rn

rn"},"start":"https://users.startribune.com/placement/1/environment/3/limit/start"},{"id":"nag","count":7,"action":"lightbox","mute":true,"action_config":{"height":null,"width":"630px","redirect_on_close":null,"template":"{% extends "shell" %}rnrn{% block substyles %}rn

rn{% endblock %}rnrn{% block page %}rn{#rnrn{{ limit - count - 1 }}rnrn{{ form.flow_form_open({nextAction: 'firstSlide'}, null, null, '_top') }}rn {{ form.btn('Save Now') }}rn{{ form.flow_form_close() }}rnrn

rnrnrnu2022 rnrnrnrn#}rn

rn

rn

You have {{ limit - count - 1 }} articles left

rn

rn rn u00a0u00a0u2022u00a0u00a0rn rn

rn

rn

rn

rn Save More Todayrn

Over 70% off!

rn

rn

rn

rn

99u00a2 for first 4 weeks

rn {{ form.flow_form_open({nextAction: 'firstSlide'}, null, null, '_top') }}rn {{ form.button('Save Now', 'btn nag-btn') }}rn {{ form.flow_form_close() }}rn

rn

rn{% endblock %}rnrn{% block last %}rn{{ parent() }}rnrn{% endblock %}"},"start":"https://users.startribune.com/placement/1/environment/3/nag/start"},{"id":"x","count":4,"action":"ignore","mute":true,"action_config":false,"start":"https://users.startribune.com/placement/1/environment/3/x/start"},{"id":"multi-start","count":3,"action":"fly_in","mute":true,"action_config":{"location":"bottom_left","slide_direction":"bottom","group_id":null,"display_delay":"0","collapse_delay":"10","template":"

rn

rn

rn

rn u00d7rn

rn

rn

From just

rn

$3.79 99u00a2 a week

rn Save nowrn

rn

rn

"},"start":"https://users.startribune.com/placement/1/environment/3/multi-start/start"}]};


College Dorm and Apartment Cooking gadgets - if you change the sort settings on the Amazon page, it will show other items by price


Source link