Help Your College-Bound Student Start Budgeting Smart
Tips for building strong financial habits before the first day of class
College is expensive — not just tuition, but housing, food, books, and late-night pizza too. Before your child sets foot on campus, help them build financial literacy that will serve them well beyond graduation.
Start With the Big Picture
College costs add up quickly. Average tuition alone ranges from $11,610 to $43,350 per year. Total cost of attendance over four years often exceeds $150,000. Teach your child to account for all expenses and track spending by category — from textbooks to takeout.
Understand Loans Before Borrowing
If your student takes out $27,000 in federal loans, they could face $300 monthly payments for 10 years after graduation. Emphasize borrowing only what’s necessary — tuition, fees, and basic living expenses — and covering extras with part-time work or budgeting. The less they borrow now, the more options they’ll have later.
Budgeting Basics: Needs vs. Wants
Your student should understand how to:
- Track income and expenses
- Use a budgeting app or spreadsheet
- Set limits for categories
- Plan for irregular expenses like books
Explain that budgeting is a tool for freedom — not a punishment.
Debit and Credit 101
Make sure they understand checking accounts, overdraft fees, and how to check their balance regularly. If they’ll be using a credit card, teach them how interest works and why it’s important to pay off the full balance each month — and to avoid maxing out their limit.
Managing Peer Pressure and “Fun” Money
College life comes with social spending pressure. Help your student plan for fun — like football games or spring break — while being honest about their limits. Talk through how to handle overspending: whether that means dipping into savings, asking for help, or picking up extra work.
Bottom Line
This is about more than paying for college — it’s about building lifelong money habits. Let your child learn alongside you, so they feel empowered to make smart financial choices every step of the way.
