Going Back to School Can Be a Life Lesson

When your child goes off to college, they are due to experience many firsts. Most teens will be living away from home for the first time. Learning how to do laundry, cleaning up after themselves and cooking meals will become exciting experiences for your young son or daughter along with additional, new responsibilities. Most will also embark on managing their finances, budgeting, paying bills and getting their first credit card. Teaching your child how to use the proper amount of laundry soap is important but discussing the importance of paying bills on time is crucial. At this collection agency we have seen the pitfalls of college students getting in over their heads financially, accruing overwhelming debt early in life. We have also witnessed the success of college students who have had some financial guidance from their parents. 

Freshman year in college is tremendous, to say the least. The differences in independence and responsibility from high school to college life are vast.  It may be easy for your son or daughter to become distracted with classes, studying and a busy social life. However, with a bit of advice and help from their parents, college students can learn to be responsible, pay bills on time and stay out of debt. As a parent, you can explain to your child how their credit score is taken into account when making larger purchases, like a home, in the future. Understanding the ‘big picture’ regarding their credit and how irresponsible behavior now will count against them in the future can deter many young consumers from taking on too much debt. Also discussing the importance of paying bills on time and setting up a ‘system’ is a wise thing to do. Help your child set up on-line payments, a payment calendar or another system to remind them when to pay bills to provide them with the proper tools.

Every child is different, so keep working with your son or daughter to find what works best for them. Although your child may have new-found independence, you are still the parent so patience and persistence do apply. At the risk of being a nag, check up on your kids for the first few months to ensure they are on track with their finances. Take your child to the bank to assist them in opening an account for their summer job money and work with them to establish the most effective way to distribute their funds over the course of their academic year; whether it is to pay for books, saved for emergencies or for social activities.

With your guidance and by setting a good example, you can get your college student on the road to a good credit and a solid financial future. And relax. They’re out of the house for a few years…