With the fall semester around the corner, it’s natural to feel excited and nervous about the big changes ahead. Before things get into full swing, it’s a good time to talk with your student about a few important money and life topics.
Lay the groundwork for a smooth, focused, and financially smart semester by having these five conversations.
1. Build a simple budget that actually works
If they don’t already have a budget, now is the time to create one.
- Choose a budget tracker they’ll use. Encourage them to set reminders to regularly review and update their chosen tracker. Need help making a budget? Our budget calculator is a great place to start.
- Identify where money is coming from. Grants, scholarships, jobs, loans, or help from home, and what they can and can’t be used for.
- Break spending into two buckets. One-time expenses (books, dorm items, school supplies) and monthly costs (groceries, laundry, gas, entertainment).
2. Get smart with credit and debit cards
Before your student heads off to college with a credit and/or debit card, talk with them about how to responsibly use each card.
- Review how their card(s) work. Debit cards pull from available funds, while credit cards involve borrowing.
- Discuss good credit habits. Pay credit cards off on time, in full, and keep usage under 30%.
- Avoid costly mistakes. Talk about how overspending, missing payments, and relying too heavily on credit can be a slippery slope.
- Set up mobile alerts. Stay ahead of problems by turning on alerts for low balances, suspicious activity, and payment due dates.
3. Be ready for the “what-ifs”
Sometimes plans go sideways and accidents happen. Get ahead of stressful situations by talking through contingency plans if your young adult loses their wallet, spills coffee on their laptop, gets sick, breaks their phone, or has to travel unexpectedly.
- Make emergency plans. Decide the best ways to handle various scenarios together. Include who they should call and what steps they should take.
- Keep important info somewhere safe. Share copies of insurance cards, banking info, and emergency contacts. Make sure you have a roommate’s or a close friend’s contact info.
- Create an emergency fund. Help your teen set aside a reasonable amount of money, $200–$300, in a separate savings account for unforeseen situations. Discuss healthy saving habits and make a plan to grow these funds if possible.
4. Make a plan to stay on track
Before your teen jumps into a hectic semester, talk about how they plan to balance academics, work, a social life, and life responsibilities.
- Consider organization tools. Planners or digital calendars with notifications can help your teen stay ahead of assignments, work shifts, and exams.
- Build a routine. Help them proactively create a balanced weekly schedule that includes study time, meals, rest, and social activities.
- Look into campus support. Remind them of their school’s academic resources like writing centers, tutors, mental health counseling, and academic advisors.
Encourage your teen to check in with a trusted adult or mentor once a month to stay grounded, especially if they’re a freshman or living away from home for the first time.
5. Revisit the “why” behind college
Help your student set the tone for a great semester by talking about their why.
- Reconnect them with their goals. Review personal, academic, and career aspirations together. Encourage them to jot down these goals and post them on their desk or bathroom mirror for daily motivation.
- Draw connections. Help them see how budgeting, studying, and responsible choices all set them up to achieve their long-term goals.
- Celebrate progress. Remind them of their wins. Getting into college, passing tough classes, and managing their own money are huge accomplishments!
Let’s make this semester a success
Financial and academic preparedness are a shared journey. Reduce unnecessary stress for you and your student by having these important conversations before the semester starts. And remember, you’re in this transition together.
- Mistakes are part of growing. Your kid is practicing money management, testing the waters of independence, and gaining real-world experiences. They won’t always get it right the first time.
- Lead with questions, not lectures. This mindset shift invites them to have ownership in their planning and helps build their confidence and problem-solving skills.
- Keep the lines of communication open. Check in, but give them the chance to figure things out on their own first.
If you’re exploring how to pay for college, take a look at our student loan options.
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