Author: Vince Shorb
A personal financial education is an essential element of preparing our children for the financial realities of the 21st century.
A personal financial education and helping develop skills in money management for college students will help students avoid many of the problems their peers will face. Consider these statistics. According to the Center for Economic and Entrepreneurial Literacy “81 percent grossly underestimated the amount of time it would take to pay off a credit card balance making only the minimum payments”. What’s more, 54 percent reported having overdrawn their bank account.
Below are four ways we can take the first steps to providing our children a personal financial education and provide skills in money management for college students.
Mindset. With all the negative news out today one of the most important things we can provide our kids is help developing the right financial mindset. There is a variety of money management for college student’s courses available that miss this important element of providing our children a practical financial education.
Since most school’s and courses dont teach ‘mindset’ – it’s left up to parents to ensure their children are protected. One of the ways that young adults can build their financial futures is to eliminate all negative thoughts on money. It’s important to share with our children that the majority of wealthy people started with nothing and built up thanks to real world personal financial literacy training. Understanding and providing our kids with the right mindset is the first step in a practical financial education course.
Two important questions that we can ask our kids so their mindset is focused on their financial future include:
– Describe the lifestyle you want to live? – What is the investment associated with that lifestyle choice?
Start Building Credit Early. One of the simplest personal financial education lessons we can teach is showing our kids how to build their credit. Classes on money management for college students are great however it is important our kids know about credit long before school.
On an averaged priced car having good credit, as opposed to bad credit, can save you over ten thousand dollars. It is important that personal financial education courses show our kids how to build their credit while they are young.
Once your child has money saved, a working budget and can control their spending they can get a secured credit card. Student credit cards, when used properly, can be a tool to help build their credit. They can start to purchase inexpensive items and pay off in full each month. That shows creditors that you’re mature enough to handle the responsibility of credit, and you make your payments.
Finding a Cause. No personal financial education program and courses on money management for college students is complete without lessons on giving back. By doing something that creates a positive change in the world and motivates our kids to succeed in all areas of their life. So not only does doing the right thing help others, eventually it helps the Good Samaritans too.
Set up the proper accounts. Another important element of personal financial education courses and classes on money management for college students is having the right account set up. Each student should set up their checking account, savings account, IRAs, and brokerage account immediately.
All these accounts can be set up to work automatically. So when bills are paid automatically, money is saved & invested for you automatically. This helps you keep a consistent investment plan in place and hopefully will help you achieve long-term financial security.
By providing your kids a personal financial education they will have the skills to make the most of their life. Help them a get a head start to achieving financial freedom and eliminate their money worries forever.
About the Author
Get your free complete report on the top youth financial literacy programs by visiting the National Youth Financial Educators Council’s site at http://www.FinancialEducatorsCouncil.org . and get your free video and copy of 10 Tips to Teaching Kids about Money.