Parents Countdown to College Coach » college expenses

That all-important "money talk"

Suzanne Shaffer — Mon, 04 Oct 2010 17:35:55 +0000

It’s never too early to talk to your teens about college costs and what is expected of them once they take that much anticipated journey. If they understand the family’s financial situation and know what they will be expected to contribute towards college costs, they can start planning ahead by working during the summers and saving (Note: just make sure they put those savings in the parents name for financial aid award purposes).

According to a recent article about talking with your kids about college costs, kids are acutely aware of their need to contribute :

Despite the continuing cloudy economic forecast, one thing is crystal-clear: College costs continue to climb. And it’s made many students acutely aware. In a recent Fidelity Investments online survey of U.S. high school seniors, a majority said saving for education was “overwhelming.” Good news for parents: 94 percent of students were willing to pay for at least some of their college costs; 56 percent of those said their share should be half.

When having the conversation, however, make sure it’s just that–not a lecture. Approach it as a collaborative discussion and use this as a start to helping your teen understand the importance of budgeting and “needs vs wants”. Here are just a few bullet points highlighted in the above mentioned article:

Start off by making sure your teen knows what a “need” is and what a “want” is in relation to college costs. For some teens, all wants are needs. This is the time to nail the definition down and clarify it in their minds.
Decide just who will be paying for each college expense. Every family is different but it’s important to make this clear from the very beginning so that there won’t be any surprises.
Use a budget worksheet and understand ALL college expenses. Don’t just assume that tuition, room and board will cover it. Check out my article at Smart College Visit for a list of some of those unexpected college costs.

When your teens contribute to the costs of their education, they will be more invested in their success. They will also learn valuable budgeting lessons that will stick with them past college and into adulthood. You’re doing your teen a disservice if you don’t involve them in the college financial discussions. They need to be active participants in the decisions and also play an active part in paying for that high-cost college education.

Many of the college debt disasters in the news recently might have been avoided if the parents had sat down with their teens and had the “money talk”. Don’t let your teen walk across that stage at graduation and be clueless as to how to budget and be a financially responsible adult. It’s your job as a parent college coach to prepare them for a financially stable future.

If you liked this post, you might also like to read:

Being realistic about college debt

Top 10 Questions parents ask about college

Campus Dough: A Smart Spending Alternative

Suzanne Shaffer — Mon, 03 May 2010 15:19:21 +0000

When my daughter was in college, she was inundated with credit card offers: in the mail, on campus, and via telephone. During freshman orientation, they signed her up for a local checking account and accompanying credit card on the spot. I have to say, at the time it was convenient and easy. But looking back, that one credit card led to debt and made it easier to sign up for more. After graduating from college, she had accumulated some hefty credit card balances due to the convenience of using those cards.

University Parent Media, seeing the need for smart spending alternatives to credit cards, has partnered with StorValue and created a program for college students that offers two amazing benefits: controlled spending and cash back rewards. Campus Dough, a low-fee, reward-filled prepaid debit card, provides unmatched benefits for students and their families. Campus Dough gives collegians shopping, restaurant discounts and a new way to manage money through virtual banking and online tools. Parents can use Campus Dough to help ensure security and responsible spending.

Here are some appealing benefits for both parents and college-bound teens:

They can arrange for direct deposit to their card from their jobs on campus; eliminating check cashing fees and wait time.
They can personalize their card with their favorite image or photo.
Campus Dough allows them to manage their account, transfer funds and pay bills on their smart phones.
They earn a percentage of each transaction with cash back rewards; and if they follow Campus Dough on Facebook or Twitter, they can take advantage of special offers.
They may find they no longer need a checking account after using this card, eliminating high bank fees.
Their colleges also earn rewards.
Parents can transfer funds to the card by linking to their checking accounts.
This is an effective method to control spending.

According to Campus Dough, “the more dough you spend, the more dough you earn, AND the more dough you SAVE!”

Take some time today to visit their website and watch the video presentations on how the card works. Once you do, I’m sure you’ll see the benefits of this card and sign up for one today. It’s the smart way to help your college-bound teen learn about budgeting, spending and the benefits of graduating with good credit and minimal debt.

In College, the Little Things Can Add Up

Suzanne Shaffer — Wed, 06 May 2009 20:45:23 +0000

It’s a given that the greatest college expense will be tuition, followed by room and board. But it’s the little things that can add up. If you’re budgeting for college and have all your ducks in a row regarding the BIG expenses, you might want to take a pencil and budget in the little things. You’ll be surprised how the nickels and dimes can add up to hundreds.

Transportation-Most campuses do not allow freshmen to have cars. If they do, consider doing without. You can most likely find everything you need on or near campus. Consider buying a bus pass or walking. It’s the easiest way to pare down the expenses.
Communication-Compare cellphone plans and make sure you’re signed up for a plan that allows you to have unlimited texting and free conversations with your friends and family. Keep track of your minutes and don’t go over.
Computer-Many schools require students to have a personal computer. Shop around for one with a wireless connection so you can use the campus ethernet. Buy it when there are sales and bargains and verify that a good warranty is attached.
Insurance-If your family has health insurance that covers you, make sure the college doesn’t tack on those extra charges to your tuition bill. It’s not a bad idea to get some sort of content coverage for your dorm room. Things tend to “disappear” on crowded college campuses.
Tuition-Stay on track and make sure you finish your education ON TIME. Additional semesters, hours, etc. will increase your tuition and add extra costs when they are unnecessary.
Food-If you eat regular meals, the college meal plans are great bargains. If you don’t, and your college will allow you to opt out or pick and choose, you might save money by doing so. My daughter rarely used her plan and we found it was an unnecessary expense.

These are just a few ideas that might help you save some cash during your college years. As a parent, you’ll appreciate the chance to keep some of your hard-earned money in your pocket.

If you’ve got a hint I haven’t touched on please comment here. I’m sure our readers could benefit from any and all suggestions.