Too many families send their kids off to college with this unspoken belief: “They’ll figure it out.” But when it comes to money, hope is not a strategy. The truth is, most young adults don’t figure it out—they fall into avoidable traps like credit card debt, impulse spending, or simply running out of money before the semester ends.
The fix? Create a money plan together—now.
Parents: Financial literacy isn’t a one-time lecture. It’s a lifelong skill built through repetition, modeling, and small real-world decisions. Sit down with your teen before they head off to school—or even if they’re already there—and walk through a basic budget together. Cover the essentials: tuition (if applicable), rent, groceries, gas, entertainment, and emergencies. Use real numbers and tools like Google Sheets or budgeting apps to make it visual and practical.
Students: Don’t tune out—this is your life. Building a money plan doesn’t mean you can’t have fun. It means you’ll have control over your choices. The goal isn’t to micromanage every dollar—it’s to give you freedom without falling into financial stress.
Build the Plan in 5 Simple Steps:
- Know Your Income – Are you getting a monthly allowance? Working part-time? Taking out loans? Know what’s coming in.
- Track Your Expenses – Start by monitoring what you actually spend for 30 days. Categories like food, subscriptions, clothes, and coffee add up fast.
- Set Goals – Aim to save a percentage of your income (10% is a great start). Build an emergency fund for unexpected expenses.
- Talk About Credit – If your student is using a credit card, make sure they know how interest works and the importance of paying in full each month.
- Check In Monthly – Make money check-ins a monthly ritual. Adjust as needed and celebrate progress, not just perfection.
Money habits are like brushing your teeth—they need to be consistent, intentional, and ideally, learned young. When families work as a team, financial confidence grows faster. So stop hoping they’ll figure it out. Show them how to take ownership—and build a plan you’re both proud of.
Because what good is a degree… if you can’t manage your money?
