Mike Smith:
Managing money during college is different from any other time of life. Students have a limited cash flow and may only work part-time hours. But financial stewardship is still important. Diane, what financial training should parents provide their high schoolers as they prepare to send them to college for the very first time?

Diane Kummer:
Mike, we have several good suggestions for curriculum on the HSLDA website that parents may use to take a structured approach to their financial teaching. Teens should be taught to maintain and reconcile a checking account and savings account, set up a simple budget that records income and expenses, and to remember the importance of giving to the Lord’s work and to other people in need.

Also, think of practical projects that will sharpen your teen’s financial skills. For example, have them research the cost of owning and maintaining a car, also the cost of securing auto insurance. Parents should be aware that credit card companies target college students. Take time to have frank discussions with your teens regarding the trap of credit card debt.

Last, college is an expensive proposition. Encourage your teen to come up with ways to mitigate those costs, such as investing his own time to research and apply for scholarships. This will provide a better idea of the expenses involved and will hopefully result in your teen having a greater appreciation for his college education.

Mike:
Diane, that is very good practical advice. And until next time, I’m Mike Smith.