Broker Check

College Budgeting Tips for Your Kids or Grandkids

February 15, 2023

Budgeting is one of, if not the most important life skill one can learn. As they grow up, you may have been able to teach them valuable budgeting and saving skills, but when they leave home for the first time, often to go to college, it’s time to put that teaching to the test. With the freedom of living away from home comes the responsibility to take care of themselves, including their financial health.

So, make sure you remind them of important budgeting tips so they don’t find themselves in patterns of overspending that can affect them in college and beyond.

Remind them that needs are different from wants. They’re old enough to decide on what's a need and want, but make sure you relay the consequences of mistaking a want for a need. When they’re on their own, they may not have immediate help if they’re short on money to pay for a need. 

Your kid or grandkid may also pursue an on- or off-campus job. Earning their own money is a great way for them to learn what it’s like to earn their way in the world and to develop a sense of ownership and protection of what they’ve earned.

Before they leave, help them set savings goals and help provide them with a place to save or invest. While there’s value to jumping into the deep end, something as important (and as complex for an eighteen-year-old) as saving and investing in their future should be taught with care to ensure it’s as easy as possible for them to practice good financial habits.

Also, expect and leave room for mistakes. College is a time for learning in all regards. Make sure you’re as prepared as possible when they make a mistake or need help. Their missteps now will be the building blocks for their growth and success in the future.


By clicking on these links, you'll leave our server, as they're located on another server. We haven't independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.

This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products. Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results. Death benefit payouts are based upon the claims paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.