Chances are you have a few clients with kids who are nearing college age or may even be in college now.
When it comes to higher education many parents focus on the obvious things—how to pay for tuition, books, living expenses, etc.
Many fail to realize that some responsibility will actually fall on their kids’ shoulders and you can help them set some boundaries and guidelines that can lead to a successful financial future for the whole family.
Here are some tips to help prepare them for living on their own and thriving financially in college
A majority of parents are okay with depositing a monthly amount in their student’s bank account, but if they aren’t sure of how the money is intended to be spent what’s stopping them from buying a new X-box or that overpriced concert ticket?
For those new to financial planning, like teens and young adults, they may think a large lump sum will stretch over a much longer time than it actually will. Help organize a system that dictates how much is being spent each month and where.
Even if your client’s child is going after a degree in something totally unrelated to finances, encourage them to enroll in some financial education.
Having a basis of financial knowledge will be useful in the real world. Apart from classes, there are tons of blogs, books, and even apps that are easily available online.
While many parents worry that working will take away time from studying, the benefits of part-time work outweigh the cons.
Not only will a part-time job give students a little extra spending money, but it can also offer valuable professional work experience, networking opportunities and a connection to the campus from a job through the school. A modest 10-15 hours a week could do wonders.
It wouldn’t be college without a few mess ups. Remind your client that. Allowing students the space to make a few mistakes isn’t the end of the world.
If your client’s child burns through their money to quickly one month, they will quickly learn that eating is more important than a new pair of shoes.
This doesn’t have to be a hard “I told you so” lesson, but a little financial stress can help young adults prepare and prioritize for the future.
If you know, some of your clients have high school aged or college aged children offer some advice or even a free meeting with them to help answer questions and start a foundation for their own financial success.
I’m sure your clients will appreciate the concern and help further strengthening your own relationship.
Would you add any other tips to this list? I would love to hear your thoughts—leave a comment for us!
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