By Lacey Perry
As students launch into their college era, one of the most valuable lessons you can pass on has nothing to do with textbooks or test scores—it’s financial empowerment. Teaching kids and young adults about how to manage money early on sets them up for long-term success, reduces financial stress, and helps them make smarter decisions now and in the future.
My daughters are in elementary and middle school, but they have already begun to manage the money they make from doing chores around the house and participating in extracurricular activities such as 4-H. When I was their age, I don’t remember having tools available to learn how to budget and manage my money, so I had a steep learning curve when I found my first job. Knowing that my daughters are already practicing money management at a young age, gives me confidence that they will have a better financial life when they begin college.
But, if your kids didn’t have a head start and are soon going to be on their way to navigating campus life, I encourage you to share with them a few simple but impactful lessons to help build budgeting habits, understand credit, and manage spending wisely.
Below are practical tips you can share to guide your teen in becoming more financially independent starting today:
Passing on Financial Education to Your Student: Money management is a muscle you help your children build and it’s never too late to start. From learning how to build a budget, to understanding the benefits of compound interest, instilling smart spending, saving and budgeting habits during the college years will help your student be well-prepped for long-term financial success.
Mastering Your Back-to-School Budget: Starting college is a time of dramatic change that requires adjustment, which can often be accompanied by financial strain for parents and students alike. Creating a budget that covers essentials like textbooks, supplies and tuition as well as entertainment or paying club dues is key. Having a budget also allows your student to know what costs might look like for things like study abroad or internship expenses. Set spending limits and track variable purchases (new clothes, dorm decor, tuition, etc.) to keep yourself on track and avoid overspending online or in stores.
- Pro Tip: Help your student build healthy habits by using free budgeting apps and digital tools to stay on track. Bank of America’s Better Money Habits website offers easy-to-follow guides for students, helping them manage their money and track expenses as they go. Remember, budgeting doesn’t have to be all about sacrifice. Maintain some flexibility to help your financial impact be positive, not overwhelming: mistakes are going to happen.
Building Credit as a Student: College is a great time to start building credit. In the future, your student might want to rent an apartment or apply for a car loan. That’s when having a good credit score can make a big difference. Consider setting them up with a student-friendly credit card, and make sure to set up automatic payments to avoid missing any payments. Maintaining a positive credit score is an excellent way to open doors for future financial engagements.
With a little guidance, a budget and understanding credit, the teen in your life will be prepared for the personal and financial freedoms college brings.
About the Author
Lacey Perry serves as the Market Executive for Bank of America in Tucson, Arizona. In this role, she drives the development and execution of a local strategy to deliver to clients, the community, and employees. She is responsible for developing community partnerships, managing market investments, activating employee engagement, and supporting business activities.
