College Students and Money (2)

Now that you've paid the first semester's tuition bill, you can sit back and breathe a sigh of relief, right? Brace yourself, you're about to face the ultimate college financial crisis: sending an 18 year old off with a book of checks and access to credit. To avoid a call of "Help, I've fallen into credit card debt and can't get out" don't let your kids leave home without knowing the family's financial "aid" policy.

Decide in advance who would pay if your student decides to join a sorority or fraternity, or take up an activity such as horse back riding. Better to wait until 2nd semester before either of you makes that kind of financial commitment.

Not every college student is a spend thrift. For every story about kids working two jobs to pay off credit card debts there is also a student who has gotten through debt free. Know your child and teach sound financial practices from an early age.

Source: Bodnar, J. (1999, September). Making cash king on campus. Kiplinger's Personal Finance Magazine, p. 116.