It  always strikes me as funny (in a sad sort of way:-) that parents wait until their children graduate from high school before thinking about how to teach them to manage the money they’re about to go off to college with. Someone asked me recently for some pointers about how to prepare their son who was going off to college in just a few weeks. After contemplating it for a bit, here’s what I came up with…

1. First, do NOT get them a credit card…YET. They must learn how to manage their OWN money through using a debit card and checking account before they can be trusted with using other people’s money for short periods of time. Introduce them to credit cards after they have shown they are responsible for the additional pointers following this one.
2. It’s critical to have a sound budget in place for your soon-to-be college student. They must know what financial responsibilities are theirs and which ones their parents are going to handle. AND they must know the consequences up front of making purchasing choices that don’t meet your approval with your money. (And YOU must stick with those consequences or they won’t learn a thing from their financial mistakes.)
3. It’s important to put your son or daughter in charge of their own financial needs as soon as possible. This means taking the money you are agreeing to be responsible for providing and running it THROUGH them instead of outright buying things FOR them. Remember, it’s only through repetitive practice as something do we develop skills. Money is no different. NOTE: if you have younger ones, please consider getting a copy of The Ultimate Allowance to learn how to put a powerful allowance system into place that’s meant to teach kids about money throughout childhood.
4. 

   Money Savvy College Students

   Don’t agree to pay for everything. Most adults admit that when they had to participate in paying for at least a portion of their own college experience, they were better students and better stewards of their financial resources and they appreciated the experience a whole lot more. There’s nothing wrong with your son or daughter getting a little part-time job that will enable them to participate in their own care and feeding.

5. If your soon-to-be student is moving into a dorm, there is very little he or she really needs. Agree on a budget and let THEM make ends meet. Encourage them to go to thrift stores and garage sales to find the items they need. There is no need to buy new. This teaches resourcefulness and fosters creativity in the student.
6. If the student is moving into an apartment and has never purchased household items and you wish to help, again, sit down and help them (emphasis on HELP) create a budget, provide the funding you are willing to provide and let them do the purchasing. This is when the “needs vs wants” rubber really meets the road. Do NOT provide everything they need. Foster resourcefulness and creativity at every turn (even if you can afford the help them more).
7. Learn to say, “I’m so sorry that you made that choice with your money. What different decision can you make in the future so that won’t happen again and you’ll have the money you need for……?”
8. Last but not least, learn to say, “No, I can’t help you.” No emotion, no judgment, no letting up. Just NO.

Hope that helps because as a parent, I know you don’t want your college students to have to move home because of financial reasons! The goal is for them to move out and STAY out, not move out to eventually move home because they made a lot of financial mistakes.

Follow the guidelines above and your students will have a leg up on their peers that didn’t get any guidance from mom or dad.