subject: Managing Money in College is Tough [print this page] Managing money in college is toughManaging money in college is tough. If you have children that are getting ready to embark on that next stage in life, then here are some important lessons you could teach them.
Living within their means is possibly one of the best lessons that can be taught to a college student. Unfortunately most of them leave home without learning how to be fiscally responsible. Students should be encouraged to seek a realistic budget. After tuition and board have been paid parents should help students form a weekly or monthly budget to cover food, entertainment and any other items that come to mind.
Everyone realizes that college kids these days are mostly spoilt. Some leave home with giant flat screen TV's, multiple computers and even games consoles. Do you really want to be left with the financial burden of replacing these items should something happen to your child's residence? Probably not which is why you should ensure that these goods are fully covered by your insurance. Personal property in a dorm should be covered by homeowners insurance but those living off campus may be left without any protection. In that case renters insurance should be sufficient enough to cover your child.
That brings us to the final point, a vehicle. Does your child really need a vehicle on campus? It may be convenient on the weekends but the cost of keeping that vehicle there may outweigh the benefits. Remember it is not just the cost of gas but you also have to factor in parking passes and insurance. Parking passes can run into the hundreds depending on where your child attends college, you may however receive discounts on auto insurance if your child receives good grades.
