Living at Home Is Easy
When teenagers live at home, there aren’t very many financial decision they need to make – parents make them. Once they move to the college life, they suddenly have to learn to handle the financial matters on their own. Helping them with tips on how to handle the situation will make the financial transition easier.
Knowing How Much Things Cost
Help your teenager make a list of mandatory monthly expenses so they understand where money has to go. That includes things like, rent, utilities, transportation, groceries, parking, school supplies, debt repayment, and student or activity fees. Once you know establish where money has to go each month you’ll be able to set up a discretionary fund and a savings plan along with your teenage student.
Create an Allowance Fund
Creating an allowance fund will help with setting limits for things like entertainment, eating out, clothing, and special purchases. It will be important for your teenage student to stay on budget no matter how tight things get.
Keep Receipts Organized
Set up a system that will make it easy to keep receipts in one place. Organizing them by month and by category and keeping them in a safe place will help in controlling the pre-determined budget.
Being Frugal is Not being Cheap
Help your teenage student look for creative ways to save money. Consider carpooling, public transit or biking as a means of getting around. Figure out how to plan to bring lunches and snacks instead of buying it . Check out on buying text books and lab supplies second hand if possible.
Hope you have enjoyed these tips – please send in your comments, suggestions and experiences, your input is always welcomed and very much appreciated