"Adulting" Skills for College: Financial Literacy

"Adulting" is a popular term for the everyday skills and responsibilities young people take on as they move toward independence. Mastering these skills can have an enormous impact on students' college experiences, and parents can help them in their journey.

In the "Adulting Skills for College" series, each post focuses on one essential skill area.

Financial Literacy

Many students take a financial literacy course in high school, but real world experience is important preparation for college. College life introduces new financial responsibilities, and high school is the perfect time to develop healthy financial habits. Here are several way get started:

Budgeting

Guide your teen as they manage their spending money and learn to adhere to a budget.

Shopping habits

Involve teens in grocery shopping and household purchases. Encourage them to compare prices, look for deals, and get familiar with discount programs.

Banking

Make sure your teen knows how to use a debit card, ATM, and even how to write a check- yes, they still do pop up now and then.

Peer payments

Introduce teens to apps like Venmo and Zelle, which are commonly used by students to split costs for things like meals, ride shares, or event tickets.

Credit cards

Some families add teens as authorized users on a parent's credit card to start building credit. Once teens turn 18, they typically start receiving their own credit card offers. Discuss what to look for in a first card and help them understand compound interest and the benefit of paying balances in full each month.

Anticipating and avoiding financial difficulties

It is very common for college freshmen to run out of discretionary money quickly their first semester, resulting in some tough lessons for students and frustration for parents. You know your teen and their spending habits, so talking openly about any potential temptations can help them plan ahead and hopefully avoid overspending.

Trial and error is generally a great way to learn, but with financial literacy, it's best to get it correct from the start. Creating healthy financial practices in high school and clearly defined financial expectations for college will help students make a responsible transition to campus life and adulthood.

At Growing2College, we support families through all aspects of high school and college planning. Request a free 20-min consultation to learn more about how we can be helpful.

Kate Pedigo, M.Ed. NCC is an Independent Educational Consultant and founder of Growing2College. Join us on social media for college planning updates, tips, and resources: Facebook   Instagram   LinkedIn