College Kids and Spending Money
There’s an old saying that polite company doesn’t discuss money, sex, or politics. That’s probably true. It never said it should NOT be discussed in families.
I consider you my “all things college” blog family, so let’s talk about your student’s spending money. Specifically, the daily or weekly needs of today’s college students. There are lots of ways and techniques to deal with this. Please pick what works for you. I am really focusing on the HOW and the WHAT.
Many families cannot provide what we used to call an “allowance.” They advise their student to fend for themselves, get a small part-time job, and make do. Sadly, that’s where the conversation stops. I see a lot of potholes in this approach. The new student is hunting for a job in a strange environment, doesn’t know what is acceptable (could be their first job due to Covid!), ends up working 15-20 hours a week and is bombing their classes because they can’t keep up. Yeah, they are making some money, but they are falling behind in their primary job- going to college! Talking through what having a small job in college SHOULD look like is critical to help them with this potentially new adventure.
Other families are able to provide a healthy allowance to cover needs and wants. Primarily out of abundance and ease, some families drop a full semester of spending money on their student and tell them to make it last. Right. Want to make a betting pool about when the text comes in about “no money?” I wouldn’t take a bet on that one past October 20th. Unless your student is a self-budgeter extraordinaire, this option may fail.
Surely there’s another way. Let’s consider another process
Engage in a conversation with your student where you go over what you can and will not be able to do. That’s the starting place for everything else. If you cannot provide spending money, that’s fine. Help your student identify a rudimentary budget. As you do this, consider the categories below:
CourseBooks- are you covering this? Regardless of who is paying for them, have your student research these websites: amazon. com, chegg.com or Ebooks.com to RENT their course textbooks. TIP: Professors often “require” a specific edition of a certain book. It’s usually very expensive. In almost all situations, the previous edition is just fine, and WAY less expensive to rent or buy.
Specialty Majors Needs- Science, Arts & Engineering majors tend to need specialty supplies. Try to get this list before they leave and price it online. The local college bookstore charges BIG BUCKS because they had to find AND buy these specialty items. If you can bypass them, those are real savings.
Personal items needs- shampoo, makeup, razors, soap, blah, blah blah. Ask your student to list and price those and think about how often they will need to replace them. This can open their eyes to what has been taken for granted. They might learn to :squeeze the tube” a whole lot better now.
Buying Clothes- Not being sexist here, but men tend to live in what they got, while women are very different. Make a note and make room in your budget as needed for your student’s clothing needs.
Fun Money- They need to think this through, especially on a tight budget. It should be fun to see what they actually come up with! You may need to nix weekly concert tickets.
Now, you decide and divide.
If they need to pay for it all, start talking about jobs, hourly wages, TAXES, & take-home pay. Figure the hours they need to work to pay for their needs and wants. Re-work those wants until it makes sense. Talk about the kinds of jobs they might do. Then, HOW MANY HOURS a week they can spend on work, without lowering their grades? While I am not an expert, It seems that more than 15 hours a week will cut into academic results. Back in the day, work/study programs were usually limited to 10-12 hours a week for that very reason.
Repeat the above process even if they only need to work part-time. Why? Because it arms them with the work for pay reality. It gives them a real budget!
I found a great job during my last two years in college. I attended a rural, out-in-the-country school. You needed a vehicle to go see a movie. When I found out I got the job, I asked my dad about buying a car. We purchased a used Vega (not the best selection, believe me…) and I paid him back from my earnings every semester. I also had to pay for my car’s upkeep & gas. At the end of each semester, there was a Dad review on things like oil changes, tires, etc. It got me through college, grad school, and into my first job. I also worked in grad school to pay my food bill every week. The grad school food & fun budget was so lean if I turned it sideways, I couldn’t see it! Think 1/2 a pizza and 1 beverage of choice per week.
Above all, don’t hide money realities from your student. They need to know. They CAN contribute, and they CAN work to do so. The lessons in money management are never more important than now.
It might be one of the best lessons they’ll get in college.
Until Next Time,
All My Best,
Bonnie Burkett
