6/19/18

5 Financial Lessons Kids Should Learn Before College


By on 6/19/2018 05:36:00 AM


Our digital age children may understand computers inside and out and may have the knowledge and opportunities of the world at their fingertips--but, may be missing some very basic, yet very important, financial life skills. I learned how to balance a paper checkbook, learned about budgets and basic "bookkeeping" and money management in a life skills class offered by my high school. Today's kids may have four levels of AP Chemistry or Calculus to work through--but, may not have access to the means to learn basic financial skills. That is where you come in, parents! Don't take your child's financial literacy for granted! Here are a few of the necessary financial skills that your child should learn before heading off to college or moving out on his or her own.



Whether you teach your child from your personal experience and expertise or share information from financial professionals like Chase Rubin, it is crucial that you share basic financial lessons with your children.

Our digital age children may understand computers inside and out and may have the knowledge and opportunities of the world at their fingertips--but, may be missing some very basic, yet very important, financial life skills. I learned how to balance a paper checkbook, learned about budgets and basic "bookkeeping" and money management in a life skills class offered by my high school. Today's kids may have four levels of AP Chemistry or Calculus to work through--but, may not have access to the means to learn basic financial skills. That is where you come in, parents! Don't take your child's financial literacy for granted! Here are a few of the necessary financial skills that your child should learn before heading off to college or moving out on his or her own.

Kids Should Learn How to Open a Bank Account and Manage It. Your child may already have a savings account at your local bank--but, he may not have any idea how to access it, make deposits or withdrawals, switch to a better account type or move the account to a different bank. Take your child to the bank and open a new checking or savings account (or both!). It is a perfect opportunity to teach him or her about different account offerings and benefits at different banks, different requirements to hold the various accounts, and the documentation needed to open an account. Once the account is open for use--it is time to teach your child how to access the account online, read and understand account statements, balance a checking account, make deposits and withdrawals (both via a bank machine and via a live teller)--and learn to speak with bank personnel when problems or concerns arise. Take the time to teach your child about overdraft or account maintenance fees, how to handle a lost or missing debit card or maintain a secure account password. Learning responsibility for a bank account is a vital skill to your young adult.

Kids Should Learn How to Create a Realistic Budget and Stick to It. Too many young adults (and older adults) just do not seem to have a proper grasp of wants and needs--nor do they to take appropriate control of spending habits. Whether your child has a job or an allowance; they need to learn to budget their spending accordingly with their income! Learning to budget needs on a weekly basis may be the best way to help your child learn to spend within their means once they are free from your purse or credit card!

High School Kids Should Understand Credit Cards--and Manage Credit Limits. Using a credit card that allows students to earn rewards on purchases makes sense if they learn to choose credit cards and use credit cards wisely and within their budget. Teaching your older high school student or college student to read credit card offers, terms, limits, fees, and benefits is an important job. Additionally, you may need to teach them to track credit card spending diligently to ensure that they stay within budget limits and credit limits to avoid interest fees and penalties.

High School Students Should Learn About Getting Paid for Work. Even if your student didn't have a part-time job during high school, they might be interested in taking on a job during college either to help make ends meet or to be able to afford some of the "extras" not in the budget! Be sure to discuss a fair wage and talk about some of the tax responsibilities of earning income. When they find a new job, it is also a great time to teach your child to set up direct deposit routing for pay to help them immediately save some money and allocate some for expenses.

Children Should Learn the Value of Saving Money. Whether your child is merely saving with a traditional savings account or learning about investment opportunities--it is essential that he or she devotes some of his or her budget to saving for unexpected expenses, large purchases or future uses. If your child has not yet learned to set aside a portion of earnings or monetary gifts for a "rainy day"--it is an excellent financial lesson to learn before they head off on their own.


About Angela

Angela is a freelance travel writer and lifestyle blogger, blessed with 3 beautiful daughters, 5 moody cats, 1 spoiled dog, and 1 very supportive husband.

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