When it comes to paying for college, many parents feel overwhelmed at the prospect of saving enough to help their teen pay for tuition, books, and housing. Instead of putting all the pressure on yourself to save, be sure your teen is part of the process.
Finding an After School Job
While still in high school, encourage your teenager to save money by getting a job. This will teach your child responsibility as well as encouraging him to invest in the future. If you were to save all the money for your teen then it’s more likely that she would goof off in college because she didn’t have to work for it. Make a deal where you’ll match whatever he/she saves and put this into their college fund giving your teen a reason to work hard and save.
Using the Money Wisely
The next step in the process is teaching your teen to use the money saved wisely. One way to teach this is with a prepaid card. Instead of having a line of credit that can be abused, the teen will only be able to spend what is put on the card. This will help your teen to learn how to budget that money so it can go further and will prevent her from getting into major debt. By practicing while still in high school, she will be able to do better when she gets to college.
So many college students get into major debt between credit cards and student loans. By working hard to save and then being financially smart, she’s sure to graduate college with as little debt as possible.