Summer will pass in a blink of an eye, and soon your child will be off to university. You’ve probably already shared many of your “words of wisdom” and college survival tips, but have you had a serious talk about money?
Now that they will be on their own with more money under their control than they have ever had, here are some tips and tools you can use so your young adulteers can keep their money in check:
Budget for needs… and fun!
Let’s face it, college years are awesome! Studying is important of course, but so is enjoying life and having fun. That’s why it’s key for your children to master the art of budgeting so they make sure to cover their necessary expenses (classes, food, rent, etc…) and fun (movies, going out, eating out, traveling, partying)!
Best way is to teach your teens budgeting is to use tools to help keep their eyes on their earnings, spending, and saving.
They can either track their receipts and notes manually, or they can do it digitally on the Verity App. Verity works internationally, and it will help them see what’s happening with their money. They can even set Saving Goals so you don’t have to keep paying for their luxurious Wants! And you know there will be plenty of those like holiday trips or buying a bigger TV. So get them started on putting some money aside so they can pay for them themselves. The best part is that you have access to the app as well, so you can help guide them in the right direction.
Curb those spending habits.
We all have our vices, be it traveling, eating out at fine restaurants, or doing some real retail damage. And we aren’t alone! Our not-so-little ones also have things they just can’t stay away from.
Give them a credit card, and they’ll spend themselves into debt. Give them a debit card, and they’ll spend all that’s in their checking account.
If you know that it’s hard for them to say no to online games, new shoes, or anything in between, maybe they need something different to help them control their spending. Try a prepaid debit card, where they can only spend with how much they loaded it with and not a penny more! It’s a budgeting tool, and it will help you sleep better at night.
Credit cards can be your enemy!
It’s amazing, but not many realize that a credit card isn’t actually free money – it’s money borrowed from a bank… that you need to pay back, WITH interest! Yes, this is probably one of the hardest lessons many of us have learned when we got introduced to the real world.
Teach your children that credit card debt needs to be managed responsibly. They should pay it off completely or as much of it as possible, and as often as they can.
They affect their credit rating, which is used later when they need other types of loans or even to rent a house. So, stick to the prepaid debit card – it’s much safe and won’t get them into debt.
Send instant money for emergencies and “emergencies”.
Budgeting masters aren’t created overnight, so we can expect our children to run out of money once in a while. Hopefully that only happens sometimes, and it doesn't become a regular thing. Whether it’s for real emergencies that come up, or fashion emergencies that aren’t quite true financial emergencies, you will be the first they call for help.
When they do, you’ll want to be able to send them money ASAP. Wiring money takes time, and so does sending it through services like Western Union.
Use Verity’s money management app and instantly send your college kids money when they need it.
It will help you sleep better at night knowing you could. But don’t make it a habit! Otherwise, they’ll keep spending without care and just going back to the bank of mom and dad for more.
Preparing your young adults for real-life money matters is just as important as them learning how to survive their college years. Have these important conversations and let Verity be your tool and way to guide and teach them, no matter where they’re off to in the world. Trust us, they will thank you when they take the next step and get introduced to real adulthood and the glory of its financial world.