College Expense Budget

It wasn't budgeting my time that got me into trouble my first year in college. It was budgeting my money. I spent so much on pizza and other stuff that I had to get a job to survive. Please tell parents to give their children an opportunity to learn how to handle their money before they go off to college. - Senior
Answer: The more opportunity your children have had to learn how to budget their money, the better they should be at this task. Nevertheless, all parents should have a money chat with their children before they start college to help them avoid some common pitfalls. Here are some basic areas that need to be touched upon:
* Money - Do your children know how much money they will have from all sources for each quarter or semester?
* Financial aid - Do they know when they will receive it?
* Expenses - Do they have a solid idea of how much money they'll need?
* Budgeting - Have they made a realistic budget? Can they stick to it?
* Handling credit - Are they ready for a credit card?
* Bank account - Can they handle a bank account and manage a checkbook?
To start your money chat, you might talk about the pitfalls several college students we know have encountered:
Mark: I wasted money buying food instead of eating the dorm food that my parents had paid for.
Shari: I was pretty savvy financially until I charged something on my credit card and only paid the minimum, so I got stuck with the financing cost.
Ken: My tuition check bounced because I didn't check that the money to cover it was in the bank.
Maria: My money always ran out before the next amount came in, as I had no experience in following a budget plan.
Jane: I lived off-campus with two friends, and the landlord would only accept one check. One roommate was always late, then when she did pay, the check bounced. I had to have her parents send me a certified check.
Your children can learn more about handling their money in college by reading about the experiences of college students in "Getting Through College Without Going Broke," by Theresa Fives