Elisabeth Hooker, STCU education outreach officer
I love my mom.
I know she loves me, a lot. Something I learned when I went off to college.
I'll skip over the fact that she used to call me every Friday night. I'll leave out the part where she tracked down the name and telephone number of the girl rooming next to me and asked her to keep an eye me. I got on MySpace, Mom got on MySpace. I got a Facebook account, Mom got a Facebook account, and used the word "bling."
Sound familiar? This summer I've spent time talking to many parents who are about to send a child off to college for the first time. One question looms large: How do we manage from 200 to 2,000 miles away? It's scary to think that 18-year-olds who can't manage cell phone texting plans are now on their own.
Now is the time that your almost-adults are going to develop lifelong financial habits. There is no one-size-fits-all plan for your college student. He or she will make a few mistakes along the way and you will probably receive a phone call, e-mail, text, or letter at some point asking for a little parental "TARP" money.
Believe it or not, most college students trust financial advice from their parents. You have a small window of influence left. Share what has worked and has not worked for you. Because there is no proven theory, here are a few suggestions.
Get them in the habit. Set up a checking account early on, so they are responsible for paying for certain monthly expenses. At 13, Mom marched me in to the STCU North Branch and we set up a checking account, I paid for lunch tickets out of my monthly allowance.
Credit is not free money, it is a convenience, and you should learn early how to manage it. At 18 I was once again marched into the North Branch to receive my first, and only, credit card. Your student can purchase books and other large planned expenses on a card. Set a $500 limit, so they can't get into too much trouble.
Don't assume they intuitively know:
Here are some conversations Mom had with me:
Because they don't often pay attention to their money, young adults are the perfect target for identity theft. Show your student how to set up and use some of the following conveniences and safeguards. Your student will never actually have to set foot in a branch (unless they want to):.
It took Mom three months to learn how to use the mouse on her computer, but she was determined to stay in touch with me. Just goes to show what you can accomplish with enough motivation. It will take time and practice, and a few lessons from you, but the effort will ensure that your college student is on a path to financial success.
