Don’t Let Your College Kids Break the Bank

If your child is getting ready to leave for college or has already flown the coop, you know how expensive it can be. Tuition is only part of the cost. There’s also housing, meal plans, books, lab fees and spending money. If you don’t set spending boundaries in the beginning, your college student could become your biggest source of financial stress.

Here are some tips to help you set boundaries and avoid unexpected additional financial stress.

Be sensible about textbooks. When I was in college, there was only one way to buy books – at the campus bookstore. Now kids can rent textbooks, buy them online and even get some in an e-book format. If you buy them in person, look for used books in good condition. At the end of the semester re-sell the books your student no longer needs, either online or where you bought them, and use that money for books the following semester. I actually re-sold one of my college books online, 15 years after I used it, for $32.

Buy a meal plan. These can be expensive, but at least you know your young adult is eating something. My nephew was a college student who didn’t want the meal plan but was too proud to ask his mom for money. Some days he didn’t eat at all. A meal plan gives them access to food and keeps them from spending so much on fast food.

Set spending limits. My parents paid my car insurance when I was in college. I had to buy my own gas and come up with my own spending money. If you don’t want to be that parent, set spending limits. Have a specific amount deposited to the student’s account every pay day. If they run out, they have to wait until the next pay day like a grown up does. You might give them a credit card for emergencies, but put a limit on the card in case their definition of emergency is different than yours.

Remember Neighborhood Credit Union is here to help. Neighborhood Credit Union offers you a variety of tools to help manage your finances and teach your college student about money management. FinanceWorks is an easy to use budgeting tool and a complimentary service of Neighborhood Credit Union. Simply log-in to online banking and click the 'FinanceWorks' tab to get started today!

Following these guidelines won’t just save you money. It will teach your student responsible money management, as well.