Omaha Insurance Agent Says This Is A Money Conversation You Should Have With Your College Age Student

OMAHA, Neb.-College students are packing their bags and getting ready to go home for the summer. For many, the past year was the first time they managed their own classes and curfews — and their own bank accounts — without their parents.

This continues as a transition time for many young adults and their parents. They will need some help from you as they continue to grow into their newfound financial responsibilities and learn how to enjoy good money management for a lifetime.

Here are a few tips from Manley for talking to your college-aged students before they head back to campus next fall:

Help your student work on a budget. Budgeting goals and priorities change over time. If your child had a part-time job while he or she was in high school, the priority was probably building a piggy bank. A student’s top priority is probably not saving, but rather figuring out how to make money for the entire semester or until the summer. Parents can help a student specify and prioritize all the things the student needs to buy, such as clothes and sundries, textbooks, the cost of a car or cell phone.

Be aware of errors and have your student correct them. No matter how good the student’s budget, mistakes will be made. Some are small, such as when a student simply forgets to budget for fewer hours working at a part-time job during a week of exams or an unpaid sick day. If that happens, a little help from Mom or Dad may be appropriate. But sometimes mistakes are big, the result of earning too much and too little, and the student has no money left before the end of the first semester. In this case, as difficult as it may be, do not release your student. Help him find a way to solve the problem. If the student lives on campus and you’ve paid for a meal plan, he won’t starve. He may need to find a way to work a few more hours, or make sure he earns a few bucks over the summer vacation.

HAVE THE CALL. More specifically, the talk of credit cards, and how many credit card companies entice students into opening accounts. Show your student how long it takes to pay off even a small amount of debt (here’s a handy calculator). Even a small balance of $3,000 can take up to 10 years to pay off, and during that time the borrower would have paid over $2,200 in interest alone. Student loans, car loans and ultimately mortgages are often considered good debt. But credit cards in the hands of inexperienced users can be disastrous.

Let the student know that you are going to check. Check your student’s bank balance from time to time. Look at the expenses and deposits and make sure she is on track to make his money in the summer. As time goes by and the student gets better with money, you can let her handle it without your help.

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College is such an exciting time, and a time when young adults learn not only academic lessons, but also life lessons. They still need you to show them how to avoid making money mistakes and how to fix the mistakes they make along the way.

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About the Author: Through hard work, dedication, and a passionate and professional presence with clients’ needs, Manley and his small team from his Farmers Insurance agency in Omaha, Nebraska have grown the agency into the largest Farmers Insurance agency in the world. the state. His agency is also the second largest for the entire Farmers Insurance region. Manley’s community service includes support for the Siena/Francis Home, Restoration Exchange, Homeward Bound Animal Rescue, the Ronald McDonald House and The Stephen Center.