Are your kids financially prepared to leave home?
07/18/2025
When your kids move out—whether for college, trade school, or work—it’s their first time managing life on their own. To ease your worries, make sure you've discussed essential financial basics with them. Learning smart money habits early is crucial as they face new experiences and challenges.
What smart financial habits should kids adopt?
Discuss with your kids the need to set up a weekly spending plan so that they can make their money last. Encourage them to make decisions based on how much money they have for the week, not by what is in their account. It is also important to explain that discounts and coupons can help them buy more and spend less, which is important if they want to follow their spending plan. A key habit is encouraging them to resist impulse spending, as it can easily disrupt their budget.
Are there any new financial experiences they will encounter?
Often when your kids leave home it will be the first time they must be responsible for making payments for things like utilities, rent, or school expenses. They should pay on time and keep track of deadlines to avoid extra fees, missed scholarships, or lost opportunities due to disorganization. You can't address every new experience, so focus on helping them develop a model for making good decisions in any situation.
What are some of the frauds and scams that young adults need to understand?
Key areas of concern include phishing, which can occur via email, text, or social media; fraudulent online ordering sites, particularly since kids may use mobile sites that are more difficult to verify; and situations in which individuals encounter issues related to their debit or credit card numbers being compromised for the first time. Telling your kids about these things regularly will be helpful in keeping them aware and willing to question actions that don’t seem quite right.
Are there tips parents can give their kids that they will readily embrace?
First and foremost, make sure your kids use mobile apps for their school and financial accounts. This might require getting a new password if they have been using them since enrolling. Also help them set up alerts and notifications on their financial, utility, and school accounts so they receive important updates and reminders about due dates and deadlines. Finally, encourage them to freeze their credit with all Credit Reporting agencies so if their information is compromised the bad actors won’t be able to open accounts in their name.