As your high school teen prepares to fly the nest for college, you're likely helping them become academically and socially prepared. But what about financial preparation? Here are some tips to help your child gain essential money management skills and build the foundation for their financial future, so they can enter young adulthood on the right financial foot.
Set Them Up with Their Own Checking Account
A debit card can show a teen the value of money and the importance of budgeting for certain goals. Plus they will likely need a debit card to use for most expenses in college. It works well to get your student a checking account and debit card while they’re still at home, so they can begin learning money management with you there to help.
Encourage Them to Get a Job 
This doesn’t have to be a full-time job, after all they have their studies to focus on. But a part-time job or a work study offered on campus, could help them learn necessary skills for their future career. Jobs provide structure and responsibility, teach time management, and provide a deeper understanding of the value of money.
Teach Them to Create a Budget and Stick to It
This is a great time to help your kid create a budget. List out all of their income and expenses, making clear what expenses you will or won't cover, and those they will be responsible for. Be sure to include due dates for key bills on the list. Have regular, honest conversations about where things stand with their budget. Learn more about budgeting, here.
Help Them Build Credit 
Helping your child establish a healthy credit rating is one way to get them on the road to financial fitness. A great way to do this is to help set them up with a Secured Credit Card. It works like a regular credit card, but your credit limit is determined by the amount of money you deposit and hold in a savings account, plus it even earns interest! No matter how your teen begins building credit, be sure to talk to them about the importance of good credit and managing credit wisely. Learn more about credit scores, here.
Warn Your Child About Financial Scams
Financial predators target students with all kinds of scams. If your teenager is made aware of such frauds now, chances are when they are in college, they won't fall victim if they get a bogus call, email or text demanding payment for a questionable bill.
Sending your child to college is an exciting time in both of your lives! Reaching financial adulthood isn’t something that happens on their eighteenth birthday, it is a process.
The skills and habits that you teach your student will lay the groundwork for their continued development. Your sound financial advice will lead them towards the path of financial independence. Plus by starting their education before they leave the nest, you're preparing them to face the most difficult lessons while the stakes are still fairly low.