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Supporting Your College Student's Financial Success: Top 7 Tips for Parents

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2 MIN. READ

Whether it’s your teen’s freshman or senior year, dropping them off at college always feels like a milestone. 

College is an exciting journey that will help your teen mature and turn into a young adult, but only some of what they need to know can be taught in a classroom. That’s why we're sharing a few tips for financial success in college.
 

Creating a College Budget

Did you know room and board could cost anywhere from $9,000 to $13,000 a year for college students? Books and supplies alone often add up to more than $1,000 a year.

Enabling your child to manage their rent, books, food, and other day-to-day expenses is a great way to introduce them to budgeting gradually. You can help make them accountable by giving them a monthly allowance and encouraging them to track and adjust their spending.
 

Joint Checking Account

We recommend opening a joint checking account so you can keep an eye on your teen’s spending, offer budgeting advice, and set financial goals together. Think of it as an opportunity to learn about the mechanics of managing a checking account – with training wheels.
 

Credit Unions as a Resource

Banking at a credit union could be an ideal choice for a teen. Credit unions offer lower fees, which is perfect for a college student on a small budget. Plus, you can find options tailored to college students, such as free checking accounts with no overdraft fees.


Building Credit Responsibly

Your teen or young adult will probably need to rent a place on their own or finance their first vehicle after college. Now is the perfect time to start building credit for this major milestone. From timely payments to responsible credit card usage, managing a credit card with a spending limit is a great learning opportunity.


Establishing a Savings Plan

Financial independence requires an emergency fund. Talk to your child about incorporating savings into their budget so they can save their first $1,000 and have their own nest egg for emergencies.


Managing Student Loans

Student loans are a long-term financial commitment that your teen or young adult shouldn’t make without your guidance. Discussing student loans is an opportunity to talk about loan types, interest rates, and repayment
strategies.
 

Leveraging Credit Union Resources

Credit unions are dedicated to financial literacy and often offer educational resources, including workshops and digital tools. Explore these resources with your college-bound teen and set some financial literacy goals to gradually help them take on more responsibilities.


The Road to Financial Success

Is your teen attending college in South Florida? If so, they can open an account at Power Financial Credit Union.

From free checking with no overdraft fees to savings accounts with tax-free earnings, we offer an entire family of banking products tailored to the unique needs of college students.

Set your teen or young adult on the path to financial success today! Visit one of our branches or contact us to learn more about our student-friendly banking solutions.