From Kindergarten to College: Financial Literacy For All Ages

Teens

Avoid Hand-Outs. Your kids are not too big too fail. If your child asks for money outside his allowance, make him work for it or present a trade-off, like “I’ll give you $20 for the dinner out with your friends this weekend, but you’ll need to babysit your brother next Saturday night.”

Discuss College Costs and Be Open-Minded About College. The school your child chooses needs to be affordable. It should not be a place where you and your child are required to stretch every penny and take out $100,000 in student loans. The earlier you and your teen discuss college costs and how the whole family can help pay, the more time you can give yourself to research schools. Also, be honest with your child’s level of preparation for college. Maybe he’s better off attending a two-year or community college first. Why spend $30,000 a year when you have no idea what you want to study? A community college gives students a chance to explore their academic interests and get through introductory or first-year courses cost-effectively. Or, your son or daughter may prefer to spend a year between high school and college working or volunteering. Keep an open mind.

College Students

Keep Communication Open. When your children enter college, keep the lines of communication open over money. When you call to check in about life on campus, inquire about their expenses, ask about their budget and keep your kids on their toes so they know not to run wild with their debit card. Keeping communication open is also a way to avoid having your children keep secrets from you (and thus avoid learning about their need for a “bailout” after they’ve accumulated debt). Make your children feel like they can come to you in the early stages when they may need some guidance to make the best financial decisions possible.

Encourage Working. Having a part-time job while in school is one way students can continue to contribute to the cost of college, especially to pay for “extra-curricular” expenses. The key, of course, is to find a job that doesn’t compromise a student’s ability to graduate on time. Students should pick a job that’s on or near campus that works around their class schedule, rather than fit classes around shifts. Some smart ways to earn money while in school include applying for federal work-study programs, or selling class notes on sites like Notehall or ShareNotes. Also check to see if your child’s school offers Co-Ops where they can work for pay and sometimes college credit toward their major. Keep in mind that working while in school can help students develop actual work experience, which may set them apart from other candidates to potential employers.

Encourage Graduating on Time. Most full-time college students today do not graduate in four years. Most take five or six years to complete a bachelor’s degree. That’s an expensive way to get a degree. The earlier students graduate, the less debt they may have and the faster they can get a job to start paying off loans.