In case your child will be headed off to a UK university, it would be the ideal time to talk to him about the finance. It is one of the most important subject matter that parents often neglect. It is the responsibility of the parents to enlighten their kids and prepare them for budgeting and managing their money. The students should be well aware of the proper budgeting before they even enter the campus.
Essential Money Management Tips for Students
Most of the first-time college students will probably roll their eyes once they hear the term ‘budgeting’; however, smart budgeting is a crucial part of their college life. Regardless if they are receiving financial help, using their own money or getting support from their parents, they need to know that going to a UK university will be a costly experience that may become more expensive if the student has a poor money management practices. By following this guide, you will be able to provide the tool that your kid needs to start his life on the campus.
1. Creating a Budget Plan
When they were just in their high school years, it is common for the students to spend anything that they can see on their bank account. They have been splurging the cash they earned from the part-time work and on the allowance, they received monthly from their parents. When it’s time for them to move to their college accommodation facilities, their budget starts to become critical. You need to start exposing them to budgeting by asking him to sit with you and analyse his finances. List down all the sources of his monthly income then show him how you will divide the money. You cannot expect them to stick with the budget plan that you designed, but it is an assurance that the students have a clear picture of his expenses.
2. Using a Money Management App
Presenting your budgeting using the traditional excel file will bore the students to death. You should use better options such as the money management app that you can easily installed on your smartphone and devices. There are finance apps that are designed to perfectly fit the busy life of college students in the UK.
3. Minimising the Student Debt
There are numerous ways that you can do to minimise the Students Debt. The first thing they have to do is to spend their money only on the right stuff. They should not use their aid just to buy a pizza to delight their dorm mate. They should only borrow the amount of money they need. They should not take more than the required amount. You have to remind them over and over again that the money they borrowed needs to be proportionate to the income that they will generate once they managed to obtain their college degree.
These are just some of the most important ways of how you can teach students how to properly manage their finance. You cannot expect them to create the perfect decision on their budget, however by laying the right foundation; they can probably make it on their first year in a UK University without creating too many financial troubles.