NEWPORT NEWS, Va. (WAVY) — Even though it is the middle of summer, the first day of college classes are a few weeks away. The start date is earlier for freshmen, who usually move in for orientation before upper classmen. Experts say now is the time to talk with rising co-eds about budgeting.
For many 17- and 18-year-olds it could be the first time on their own. Financial educator, Belinda Aboagye of Bayport Credit Union, says now is the perfect time to talk with your teen before they move into the dorm. She says college students are faced with a lot of temptations. “We have to teach them delayed gratification,” said Aboagye. “You may think you need this now, but just wait a few days and a few weeks.”
While financial apps like Cash App and Venmo are convenient, experts recommend teens have their own checking and savings account with a FDIC insured institution.
Next, teach your teen about the danger of overdraft fees, and how to balance their account. Third, talk about other expenses such as supplies, spending money, clothes, and transportation. Finally, discuss refund checks and the pitfalls of credit card debt.
“It’s important to talk with them about responsible borrowing,” said Aboagye. “They are considered adults, so any wrong thing they do now can haunt them for years.”
