Good habits start in high school. Spending money needs to be tracked.

What can be controlled in college is housing costs; food costs (there are food plans at every college); tuition and books; and activity fees. Will the student have a car? Live in a dorm? Have travel expenses (commuting)? This determines expenses.

The spending money is what gets out of control. The Student activity fee (which is usually mandatory) covers many activities on campus. The student should initially concentrate on getting involved in the activities on campus that are free. If money is not a concern, then explore sororities and fraternities etc…

During Orientation, a bank is often available that offers special student rates and free checking. A DEBIT card is much safer with students because when the money is gone, it’s gone. It’s real. A credit card just keeps mounting. It is invisible. The same goes for cell phone bills. If you have a student that cannot manage their telephone bills, then put them on a calling card. When the card is used up, it’s finished. The result is real and instant. No delay.

Start teaching money management in High School, even Middle School. Our College Students are graduating with way too much college debt and credit card debt. This is all avoidable. Delayed gratification is a good thing to teach. Our College Students are graduating with $20,000 - $30,000 college debt PLUS their credit card debt. Think about this…The initial salary averages to be about $30,000 a year.

Facecard is a prepaid reloadable MasterCard that can be used wherever Mastercard is accepted.

College Students are learning about finances and credit cards represent “quick money” with no reality of the debt that is building and the pain of paying it off.

“Free Stuff Now, Huge Debt Later” is the motto of the marketing teams that are on the campus educating the students.  They are handing out lollipops that say, “Don’t Be A Sucker”!  We need to educate our students so they do not fall prey to the lure of these credit card companies.

For more information for your student, go to: TruthaboutCredit

Many parents question whether the cost of a college education is worth it. The consensus is, that it is… The student still needs to be involved in the financial discussions so they are aware of their responsibilities. This is the largest investment you will make next to the family home. So, this is a family affair.

The student’s responsibility is to study, participate in student activities (Always be building that resume), take a full course load and graduate on time. As a parent, you want to encourage them to enjoy this time in their life but to be responsible.

College is so much more than academics and there are many lessons to be learned along this college path. As parents, allow these lessons to be learned while there is a semblance of a safety net still under them.

A college education is the second largest investment you will probably make next to your home. There are many hidden costs of sending a student to college. This catches parents off guard and unprepared. This book gives you a heads up and some tips on how to handle the high cost of a college degree. This is not to scare off parents but I am all about gathering information. With information, you can tackle the financial expectations successfully.

He suggests fiscal responsibility by putting together a plan to manage financial affairs during the college experience.

Some tips he shares: Using Amazon.com or Craigslist for buying used text books (there are many sites online for used text books); Getting around campus on a bicycle -it is more prudent to have a car when you graduate to get a job than as a student; Protect yourself by having medical insurance; Save for emergencies such as student trips, your computer is stolen etc…; And No Credit Cards - a better option is a debit card.

My next posting is more advice of preparing for the hidden costs of college.