By Steve Tepper, CFP®, MBA, with Additional Content from ChatGPT

A blink of an eye and summer is over. Do you have kids (or grandkids) heading back to college? Here are some tips to help them manage their finances and stay within a budget while living on their own:

1. Create a budget: Obviously, the first step to living within a budget is to create one! If your family collegian has never managed more than their weekly allowance, take the opportunity to sit with them and list sources of income, such as financial aid, savings, loans, part-time jobs, and any money you plan to kick in on a regular basis. Then outline anticipated monthly expenses, including rent, utilities, groceries, transportation, entertainment, and other essentials.

2. Use student discounts: Many businesses near a college campus offer discounts to students. It’s important they always carry their student ID and inquire about available discounts before making a purchase, whether for clothing, food, or entertainment.

3. Buy used textbooks: Textbooks can be expensive, so look for used or digital versions, and consider renting when possible. Also, explore online platforms for textbook exchanges or buyback programs.

4. Use public transportation or carpool: Lots of college campuses, particularly in large cities, have abundant public transportation options that could replace the need for a car. If a car is necessary, consider carpooling with friends to share fuel and parking costs.

5. Avoid credit card debt: Credit cards can be convenient, but they can also lead to debt if not used responsibly. Pay off the credit card balance in full each month to avoid high interest charges.

6. Pay bills on time: That first late bill will introduce your child to the fun-filled world of exorbitant late fees and finance charges. They can avoid them by paying all bills in full and on time.

7. Utilize campus resources: Take advantage of free or low-cost resources available on campus, such as gym facilities, libraries, workshops, and events.

8. Participate in paid research studies: Some universities offer paid research studies that students can participate in. These studies might involve surveys, experiments, or focus groups and can provide extra income.

9. Plan for emergencies: Set aside a small portion of the budget for unexpected expenses. Having an emergency fund can prevent a buildup of debt when unexpected costs arise.

Managing finances in college is a valuable skill that will serve a student well beyond their university years. By developing good budgeting habits now, they’ll be better prepared for financial success in the future.