Financial Tips for Parents

High-school students bound for college will embark on many new experiences – including financial independence. Here are some tips for parents to help kids prepare for what’s in store.

* Explain how credit works. A credit card is not free money; it’s instead a means of putting off paying for purchases until a later date. Accompany them to Hopewell Federal for the best rates on credit cards and consider urging them to use a debit card instead.

* Create a spending plan. Write down all college expenses such as tuition, books, room and board, toiletries, entertainment, and so forth. Determine which expenses you’ll be paying and those for which your child will be paying.

* Come to a no-bail-out agreement. If your child ends up charging more than they can afford, or runs out of money before the end of the month, your first reaction may be to send money and bail them out. Don’t do it. If they need to figure out a way to get out of debt, such as working or staying home on weekends, chances are good they won’t make the same mistake twice.

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