Whether your child is a first-year or fourth-year college student, it is important to teach them good financial habits. A great place to start is by having them create a spending plan.
A spending plan is similar to a budget and is created on a weekly basis to include expenses associated with fixed categories. This plan requires your student to set an amount of money that they think they will spend in each category during the course of a week. Five great categories to incorporate into a spending plan include:
4. Eating Out
Keep in mind that costs like books and other school supplies should be included in tuition and education expenses and not included in a weekly spending plan. Additionally, the categories can be adjusted based on student’s interests and habits.
By creating a spending plan, this allows parents to transfer a fixed dollar amount into the student’s checking account so they don’t spend more than what they have each week. Another great budgeting and spending tool is FORUM’s reloadable card. This card gives students the power of plastic but protects them from the risk of debt.
For more ideas on your student’s spending plan, watch here!
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Categories: College, Finances, Planning, Students