Friday, November 8, 2013

Financial Issues


Living expenses on a college campus can range from cheap to way too darn much. Some parents will call me in a panic after receiving the first bill and explain that it is much more than they expected. Upon further discussion and examination it is usually due to the student’s choice, or last minute change, in residence hall and/or meal plan.
My campus is a good example of how this can happen. Students can choose anything from a $394.00 per month traditional hall to a $700.00 per month furnished apartment complete with washer, dryer and a full kitchen. The additional $2754.00 per year is obviously going to be noticed and cut deeply into savings or your budget. 
Before your child sets foot on campus, be completely honest with him about what you can afford and if he wants more than what you can provide he will have to earn the money for the more expensive housing himself. It won’t take him long to discover that the suite or apartment may be newer and more spacious, but not worth the additional 15 hours he has to work each week to afford it.  
Explain that the money you saved for his education, your retirement or the mortgage you paid on your home for the past twenty years did not magically appear overnight, but was accumulated over many years through planning, sacrifice, and steady saving. College students know this truth, but when you have lived a mere 18 years and only remember about 14 of those years, you don’t have the necessary life experience to fully understand the concept of delayed gratification.

* Some responsibilities and expenses will fall into parents’ laps for many years to come, even beyond graduation. Some people see this as an over-extension of adolescence, but there are practical reasons for parents to do these things. First and foremost, it’s cheaper. Even though your child is an adult, it is usually more cost effective to buy his health insurance for him through your employer if it is offered, and to include him on your cell phone family plan (our family plan currently covers three generations and six devices!)

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