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How to Talk Money With Your College Student
Special to The Truth
While college students
earn their degrees, paving the way for future success in
their chosen fields, they should also be paving the way for
a healthy financial future.
Unfortunately, money is
not always discussed at an early age. Indeed, 36 percent of
Americans say they are uncomfortable talking about money,
and 18 percent say money is a taboo subject within their
family, according to the American Psychological Association.
As a result, many students start college without good money
management skills. What’s more, the rising cost of tuition,
housing and other fees makes it even more challenging to
graduate in good financial standing.
Consider initiating a
productive conversation about responsible money management.
Here are a few things to consider and discuss.
• Creating a budget: Break
down expenses to show where money is spent and how it’s
wasted. Introduce the concept of the 50/20/30 rule of thumb,
which encourages budgeters to apply half their monthly
budget into fixed costs (i.e. rent, cell phone plan), 20
percent into financial goals (i.e. car, vacation), and 30
percent into flexible spending (i.e. food, shopping,
entertainment, day-to-day expenses).
• Building credit: Credit
can influence or limit future financial opportunities, even
potentially harming job prospects. Talk about the importance
of establishing and maintaining good credit.
• Funding college: Whether
it’s a work-study program, an off-campus job or applying for
and receiving a merit-based scholarship, there are many ways
students can contribute to their college education
financially and ease potential loan debt. Encourage students
to investigate these opportunities.
• Free resources. Free
resources exist which can help get the conversation going.
For example, consider checking out Wells Fargo’s new
“Preparing and Paying for College” webinar series. Families
can take part in free instructor-led events that offer
financial planning resources, information on responsible
money management and best practices for paying for college.
Webinar topics include preparing for college, applying for
scholarships, funding a college education and student loan
repayment. Registration is free. To receive information
about the Wells Fargo webinar series, visit
engage.vevent.com/rt/preparepayforcollege.
College is an exciting
time for students, filled with new friends, new knowledge
and new experiences. Encourage smart money management during
these transformative years and beyond.
Courtesy StatePoint
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