Last week I spent the day supporting youth at the Ohio State Fair with projects in Genealogy, 4H Around the Globe, Self-Determined Babysitting, and two financial projects, Money Wise and on the Road to Financial Success.  The judges from the financial projects shared how impressed they were with the youth and their financial goals.  One was planning a path to purchase the family farm complete with a business plan for sustainability.  One was able to recognize that the information he had gained in school was not enough to help him reach his goals and started working with outside resources and this project to pay for college.  In the leadership portion of the requirements, one participant shared how she had been so successful in budgeting her money, that her mother asked for her help with the household budget.  There were so many more that impressed the judges but all of these youth recognized the importance of planning how to spend, save, and share their financial resources.

Advice on money management for those headed to college

Whether your children are 8 or 18, learning to manage money is a lifelong skill.  Today, I’d like to focus on those who are headed off to college.  Learning to live on their own and manage not only their money, but their time and energy, is going to be essential to their independence and success.  I’m sure the following information is not complete, but at least it’s a place to start as you help them understand the expectations for what their budget looks like for them.

It might be easiest to start with the definition of the wants and the needs.  The essential costs of tuition, room and board, meal plans, and books and other expenses related to the school.  Having a conversation concerning “extras” and who pays for them can help avoid unexpected surprises and/or additional debt.  Setting limits for outside costs can avoid hardship for both parents and students.

Understanding how a credit card works is another key financial concept.   A credit score takes a long time to build when payments are made on time and stay at less than 10-15% of the allowable limit the score will be positive.  When the card is maxed out or late payments are made, then the credit score can drop dramatically and take a long time to rebuild.  Since landlords, insurance companies, and future employers may utilize that score to make decisions it’s vital the student understand the responsibilities of buying items on credit and how to keep records to repay it.  It might be a good idea to go to free credit report.com to get a copy of their credit report before heading off to school.

Check out Mint.com and Levelmmoney.com

Since most of our youth use technology to keep track of important things, you might want to check out Mint.com or Levelmoney.com to see if they might work for you.  Your bank may offer a budgeting app as well, evaluate what your needs are and choose the one that works best for you and your student.  Remember budgeting is much more than just recording where the money is going.  It’s setting limits and controlling where you want to spend your money to reach your goals.  (If you’d like more information on this, please contact me at hil.14@osu.edu)

While their education is the top priority at college, research shows that those students who also work may tend to be more financially responsible than those who do not.  On campus jobs tend to be a little more flexible around students schedules but off campus jobs may be more available or pay higher rates.  Talk through the advantages and disadvantages to help them make wise decisions.

Roommates and who does what - from food to cleaning

Learning to live with someone else is truly an adventure and making sure that communication is clear and expectations are outlined in the beginning before there are misunderstandings is another significant skill to remember.  Who will do it and when is the cleaning to be done?  Who shares in the groceries?  Who studies best in the morning and who at night, with or without music?  While we might not use these in our introduction to our new roommates, don’t let issues arise and have regrets about not talking about it earlier.

Soda pop and snack foods are not exactly the foods of a champion, so make sure they understand and can purchase or prepare foods that will help them maintain good health and immune systems.  Easy, thrifty recipes can be found on our website at wayne.osu.edu or Celebrate Your Plate.

I’m sure there are many additional topics to consider, but hopefully you can use these to get started.  Beginning or continuing the journey to independence is filled with opportunities to mentor our youth so they may obtain keys in successful living.

Melinda Hill is an OSU Extension Family & Consumer Sciences Educator and may be reached at 330-264-8722 or hill.14@osu.edu
CFAES provides research and related educational programs to clientele on a nondiscriminatory basis. For more information, visit cfaesdiversity.osu.edu
This article was reviously published in The Daily Record.