From student loans to credit card offers, college students are bombarded with “free” money at every turn. For many students experiencing freedom for the first time, these offers and deals are simply too good to pass up. Unfortunately, many of these “great deals” are traps that lead students down the road to financial ruin.
The following advice is designed to help keep you and your children’s finances from spiraling out of control.
- Talk to your child before they head out the door for their dorm room. Educate them in basic financial management and request that they contact you before they sign-up for credit cards or private school loans.
- Teach them how to budget. From clothes to books, college is a pricey experience. Make sure they know how to budget for priorities, and that they understand pizza every night and a big screen TV are not budgetary priorities.
- Show them how to shop and save. It’s possible to save money on everything from books to clothing, and the sooner your children become budget shoppers, the sooner they’ll discover how to stretch their dollars.
- Help them set financial savings goals. Whether it’s $10 a month, or $100 a week, help your children understand the value of putting money aside each month. By developing this habit now, they’ll carry it into adulthood.
- Stay away from private student loans, if possible. By far one of the leading causes of financial distress in the under 25 demographic are private loans from unscrupulous lenders. Oftentimes, the terms and interest rates that come with these loans are borderline usurious.
- Stress the importance of grades. If your child fails a class they need, they’ll have to retake it and pay for it again. Help them understand this and make sure they get the support they need to earn top marks in all of their classes.
- Be an open door. It’s not uncommon for children to get into dire financial straits and wallow there until issues become problems. Make sure your children feel comfortable calling you for assistance and support before these problems sink their academic career.
While we can’t help your college student maintain a high GPA, we can help keep their credit from being put on financial suspension. We invite you to contact Superior Debt Relief Solutions with any questions you may have or for any assistance you may need.
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