College is often the first time people have the freedom to really call the shots in their life, especially financially. That can easily lead to making unwise decisions. As a parent, it can be tough to sit back and watch your child make decisions that can hurt them, especially when you can see a better way. One thing you can do is to give your college student tools that will help protect them financially.
Help Them Create a Budget
Budgeting is an important life skill that will never not be relevant for your college student’s financial wellbeing. Learning how to make and stick to a budget takes time and discipline, but the financial protection it offers is worth it. This is something you can teach your child from a young age, which helps them build a habit of budgeting. If you haven’t done that, it’s not too late. Sit down with your child and compile a list of their sources of income and expenses. Teach them how to allocate their resources so that expenses are covered. Encourage them to try running different budget scenarios so they can see for themselves how to make their budget work for them.
Buy Renters’ Insurance
No one wants to think they’ll be the victim of theft or property damage. It’s often the last thing on students’ minds. It does happen though, and the loss of possessions can be a real setback in college. Renters’ insurance covers a variety of problematic situations that might otherwise be an incredible financial burden. In some instances, purchasing renters’ insurance may not be something your kid has a choice about. Some local or state laws require you to have renters’ insurance. If the local or state laws don’t require it, your child’s landlord might as a condition of them being a tenant in their property.
Teach Them to Handle Debt Responsibly
Debt is one of the biggest problems college students face. Everyone’s heard horror stories of students who leave college drowning in a sea of student loans that they may never be able to pay off. Protect your child by teaching them how to handle debt responsibly. It’s especially important to know how to use a credit card responsibly. This is made easier when they know how to create and stick to a budget so they don’t end up borrowing unnecessarily.
It can be tough to feel like you can make sure your college student is protected financially, but there are some things you can do. Help them create a budget, encourage them to purchase renters’ insurance, and teach them how to handle debt responsibly. This will help them make wise financial decisions for the rest of their life.
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