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Financial Tips For College Freshmen to Better Manage Their Money

debtEvery year, lots of teenagers join college. If your child is due to join College soon, you should know that that time will be taken up shopping for textbooks as well as packing the entire room. And like many parents, you may be tempted to start picking out the best room décor and neglect some of the important underlying issues.

Before you kiss your child goodbye, it is important that you sit him/her down and talk about personal finance. As a parent, it is your duty and obligation to prep your freshman on smart spending and budgeting strategies before they get campus life rolling.

A freshman may laugh at the idea of having a budget, but you should note that making a budget is very vital to having one of the best college experiences. All the finances that they will now be held responsible to budget and plan for might be overwhelming, especially if they are not used to such amounts of money. A few words of wisdom will however go a long way to ensuring financial stability and level mindedness.

Personal finance tips for college

Create a budget

High school students are for the most pat carefree about how they spend the money given to them or the little that they earn on their part time job. And who can blame them? Responsibilities haven’t set in yet. Moving on to college however, a budget suddenly becomes the financial pillar on which their life in college relies on.

Whether your child has been exposed to budgeting before or not, you should sit them down, identify all the streams of income including student loans and grants and categorize the expenses starting with the most crucial expenses (obviously)

Use online services

A college student, truth be told is highly unlikely to sit down in front of the laptop and open up an excel sheet to go over his/her finances. Well, luckily your child does not have to as there are far better options available. Hook up your freshman with an online service or application on their phones that will make it easier to manage their funds. Apps such as Mint come in handy for busy college students.

Set the financial limits

The one way you as a parent can help curb the overspending of your freshman is to propose financial limits meant to curb the purchase of items that are highly unnecessary. Note however that setting this limit does not prevent impulse buying, it rather gives him/her a chance to pause and think if they really need the item they are set to buy or not.