Before they go to College
The focus is on grades, test scores, sports, and what looks good on a college application.
Yes, all of those are great and please do focus on those,but the topics no one really likes to talk about are the costs of college and how it will be paid for. If your teen is considering college, now is the time to discuss how they are planning on paying for school and how to budget. Not sure where to begin? Hopefully, the following tips will help you and your teen.
Living on Campus or Staying at Home.
It is important to determine what is best for you and your teen without breaking the bank. Regardless of if they will be at home during school or living on campus, have your teen start a budget. Discuss the costs of moving, rent, groceries, insurance, etc. Have them write out all of their potential expenditures per month and show them some other things that they need to consider while planning for a monthly budget such as emergency costs. Ask if they will be planning on using student loans, a credit card, and if they will be working during school.
Pay with what?
With so many ways to pay for school, it is important to determine what is the best option. Ask if they will be planning on using student loans, scholarships, a credit card, and if they will be working during school. Whatever their perception on the matter is, ask them how they are going to pay for it.
"Seven in 10 seniors (69%) who graduated from public and nonprofit colleges in 2014 had student loan debt, with an average of $28,950 per borrower. Over the last decade-from 2004 to 2014-the share of graduates with debt rose modestly (from 65% to 69%) while average debt at graduation rose at more than twice the rate of inflation." ¹
- The Institute for College and Success
Loans can be a financial burden if not used wisely. Make sure that your student understands loans and interest before entering college. Having a plan will alleviate a lot of stress during this time.
We are here to help
If your teen is 16 or older, they could also be eligible for a debit card with a legal guardian on the account. Having a Checking Account with a debit card as a teen is a great way to learn the balance of saving and spending money. With Home Banking and Mobile Banking, it's easy to monitor accounts 24/7. Text alerts for balance updates can easily be set up.
Stop in today to get an account set up today for your teen!
¹ "State by State Data." the institute for college access & success N.p., n.d. Web. 15 June 2016.