- Track your spending.
Many people spend blindly – if there’s money in their bank accounts, they feel like they can buy something. But these are often the same people who find themselves unable to pay their bills at the end of the month, unsure of where their money went. Tracking your spending allows you to understand exactly where your money has gone – and it helps you identify places where you’re wasting money.
- Set up a savings account: Once budgeting is in place, they will need to set up savings so that excess cash doesn’t vanish in impulse buys. Find a bank whether on their college campus or close to home that has free checking and savings accounts for students, including convenient fee-free ATMs. Have them start directing their excess cash into a savings account to watch it grow over time.
- Get a credit card: Credit cards are a great teacher of discipline, and college is a great time to start establishing credit. Pre-paid cards or secured line cards with restricted access are great ways to help introduce how credit cards work to your young adult. It pays to know your options, and to put some protection around your student until they have the necessary tools to prevent their newfound freedom from causing a costly lesson learned.