I’ve learned from experience that it’s best to share any final pearls of wisdom with your son or daughter well before pulling away from the dormitory on move-in day.
In fact, do it well before leaving the house for the 10-hour road trip.
You will probably talk about making good choices with friends and the social scene, offer a reminder about avoiding embarrassing situations on social media, and urge them to make the most of the entire post-secondary experience.
One other thing to talk about: handling money responsibly.
With departure dates for post-secondary school a matter of days or a couple of weeks away, this may be the best and last opportunity to share some financial pointers before your son or daughter leaves for new home turf.
“They will listen,” said Susan Beacham, a financial literacy advocate and author. “It’s your window of opportunity to talk through money before they make mistakes.”
By having the money talk now rather than later, you just might head off a few mistakes. “Once they leave,” said Beacham, “pride and the desire to be independent takes over and they are less likely to reach out for your help.”
Budgeting is the best place to start.
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You can either create your own budget by itemizing expense categories, such as food, entertainment and personal care products. Or check out budget templates online or through the school. Also, the O.M.G. Official Money Guide for College Students, co-authored by Beacham and one of her daughters, has a good budget template.
The idea is to send your student to university or college with a printed sheet of a budget they can look at. That gives parents a starting point on how much money your student may need month to month.
Don’t stop there, however. Tell your teen you want to talk through the budget once a month during the first semester to see if it is meeting expectations. It may need tweaking on both the expense and income sides.
“If they make a mistake, let them know money mistakes are how we learn,” Beacham said. Encourage them to come to you to help them fix problems “rather than hide them because they fear your judgment.”
Some other financial nuts and bolts to cover before loading up the car:
•Get squared away on banking matters. If you haven’t done so already, find a bank that not only appeals to your student but also to parents so money transfers can be made quickly and easily. Perhaps it’s the bank that operates the ATMs on campus, or one that has strong mobile or digital features so a branch is not necessary.
Also, go over chequing account overdrafts and related fees, and make sure your 18-year-old understands the added costs associated with using ATMs that are in different networks.
•Lay out the credit card ground rules. If the card is only to be used for emergencies, spell out what counts as an emergency and what doesn’t.
•Steer clear of banks marketing credit cards on or near campus. While laws have made these practices more difficult, students still are inviting targets, and the cards often carry higher fees and penalties.
•Don’t make yourself an easy target. Campuses are like any community — crime happens. So don’t leave backpacks unattended or leave a wallet or purse in plain sight in your unlocked dorm room while visiting friends down the hall. Keep doors locked and valuables stowed away — even for short jaunts.
•Don’t loan your car to buddies. Generally speaking, if your friend is at fault in an accident, your insurance will be required to cover the damages to the other motorist’s car. As an insurance agent once told me, “When we loan our vehicle, we loan our coverage.”
While none of this is truly eye-opening advice, much of it is information I’ve shared with my three graduates from time to time, and there were no major problems.
Still, you can’t account for everything, such as when the ATM accidentally eats your kid’s debit card. So, expect the unexpected and count them as learning opportunities.
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