College Expenses Provide

Money Management Lessons For Students

Paying for a college education can be challenging for both parents and students as they struggle to determine the best way to meet the expense. Consumer Credit Counseling Service (CCCS) of Southern New England advises parents not to miss what may be a last opportunity to teach their kids money management skills.

“Students entering a college will face many first-time experiences,” said Steve Bucci, CCCS president. “With some guidance, paying college and personal expenses can be an experience that provides a positive financial lesson.”

CCCS offers the following tips:

Involve your student in the financial discussion concerning college costs. It is important for children to understand the total cost of their college education. If you are making sacrifices in your own monthly budget to help pay the expenses, they need to know that.

Introduce the “B” word. Many people are not fond of the word “budget,” but a spending plan is necessary to manage personal finances. Help your student develop budgets for food, entertainment, clothing, supplies, and transportation. The goal is to teach the importance of communicating about money, agreeing on appropriate levels of spending, and living within your means.

Do not bail out on your student. Once a budget has been set for personal spending, you will likely get a call stating that the money has run out and please send additional money. The lesson to stay within budget will not be learned if you send more money. Your student will be fine and “going without” will help reinforce the idea of sticking to budget.

Define emergency. Students will say they need money or a credit card for emergency use. Identify what is and what does not qualify as an emergency. For example, if you eat it, drink it, or wear it, it is not an emergency.

For more information on financial management, contact CCSU at 800-208-2227 or visit www.creditcounseling.org.