Parents Need To Be Sure Their College Students Understand Basic Money Management.

 

Many young adults have never been taught money management basics. As a result of weak money skills, they often quickly get into financial trouble that their parents are forced to help deal with. Common money problems include maxed out credit cards, bounced checks, late bill payments, and ruined credit scores.

College students are inundated by salespeople. Unprepared students are more likely to agree to bad contracts or user agreements from merchants. The may also may be more prone to be victimized by financial fraud.

Personal financial education website, http://MoneyManagement101.com suggests that, at a minimum, parents explain and discuss the following personal finance topics with their students:

Banking Basics- including how to manage and balance a checking account
Credit Basics- what loans and credit cards should and should not be used for
Personal Budgeting- how to establish and live within a personal budget
Credit Ratings and Credit Scores- what are credit scores and why they are important
Bill Paying- the importance of consistently paying bills on time
Information Security- steps to reduce the risk of identity theft and fraud


College freshmen are often the least prepared, although even experienced students typically need money management instruction. Parents should take steps to teach their student money management basics. If a parent feels uncomfortable or unprepared to discuss money topics with their son/daughter, there are some excellent personal finance books available in bookstores.

Another option is enrolling their student in a personal finance class. Parents and college students may view a free abridged version of the ebook course: Money Management 101: Personal Finance Basics Explained to Young Adults. Visit  http://moneymanagement101.com/invited.htm  The full Ebook explains basic money skills, such as checking account balancing, personal budgeting, maintaining a strong credit rating, responsible use of a credit card, tax basics, information security and fraud prevention tips, and explanations of important financial terminology.
No matter what instructional method chosen, the bottom line is that parents need to make sure their student has a grasp of basic money management principals. A lack of understanding of basic money skills and not living within one’s means is a hazardous situation. Money mistakes can take many years to correct and can impact both the student and their parents