MONEY MANAGEMENT

There are many money-related issues that young adults encounter, and knowing and anticipating these issues will put you one step ahead in helping them develop healthy saving and spending habits.

Allowance
Cutting allowance may make students feel as if they are being penalized for going to college.  However, it may be a good time to reevaluate the financial roles of everyone involved. If you decide to continue an allowance for your student once they are in college, try to establish some guidelines for what their financial responsibility will become.  Let them know that they will become more responsible for day-to-day expenses, like food, entertainment, books, and clothing. 

Budgeting
Help your student create an effective budget.  It may be beneficial to do this a couple of months before college begins, so you and your student can evaluate what works and what doesn't before they are on their own.  Remember to include everyday living expenses and an emergency fund for unforeseen events.

Working in school
If your student chooses to work while in school, be aware of the consequences.  A college job can be a good lesson in time management, but when students work—especially if they haven't worked previously—they suddenly have more money, but less time.  Less time can mean a decrease in performance and an increase in stress level.  More money makes it possible to purchase frivolous items. Suggest that your student not work more than 20 hours per week, and insist that your child decrease their work hours or even quit if you notice it is interfering with sleep or school work.

Find out more
Wachovia has partnered with Visa to provide even more information about practical money skills for your students and yourself. Visit Visa's Practical Money Skills Web site for a wealth of information.

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