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Talking with your student about finances

Piggy bank

Creating a budget and finding ways to save money now can set your student up for success later. Encourage them to plan and reflect on their spending habits to prepare for the school year. Here are some tips to help start the conversation.

The financial big picture

Ask your student to think about their financial big picture at the beginning of the academic year:

  • What are their spending habits now, and how might that change when they arrive on campus?
  • What future expenses can they anticipate (textbooks, social events, etc.)?
  • Are they saving for anything long-term (a trip, new bike, etc.)?
  • Will they need a part-time job to help cover expenses?

These questions will help your student gain a sense of their finances. They can start forming a budget based on their monthly income or allowance and expenses.

This may also be a good time to discuss responsibilities when it comes to certain aspects of finances:

  • If your student has a checking account and debit card, talk about the consequences of overdrafts. Many financial institutions charge fees that can quickly add up with overdrawn accounts.
  • If your student has a credit card, discuss how to use it responsibly. Make sure they know how interest is charged, how to make a payment and the consequences of missing a payment.
  • Encourage your student to review their transaction history regularly for fraudulent charges. They should notify their financial institution or credit card company immediately if they notice anything wrong.

Help them make a budget

Whether your student has a part-time job or plans to stretch their savings, they should create a budget before arriving on campus. Mint is a free mobile app that helps users establish a budget and track spending. This app can be useful for first-time budgeters who are just getting used to this practice. It simplifies the process and gives your student a good visual of where their money is going.

If possible, your student’s budget should also include saving for the unexpected. Whether its medical costs, bike maintenance or extracurricular activities, expenses can arise at any time. By building their savings, your student can avoid using a credit card and offset these expenses when they come up.

Save money with free resources

Sticking to a budget is a common struggle for many of us. It can be easy to make impulse purchases or overspend. Planning as much as possible can help your student stick to their budget. Here are some ways your student can stay within budget and save money during the academic year.

  • All students receive a Student Bus Pass with their Buff OneCard. The bus pass works on all campus, local and regional routes. This also includes the SkyRide bus to the Denver International Airport. Late Night Transit features bus service that runs until 3 a.m. Thursday, Friday and Saturday nights of the regular semester. Students can also download the Transit app to find schedules and near-by bus routes.
  • Encourage your student to check the CU Events Calendar or CU Boulder Today to find free events throughout the year.
  • Many businesses in Boulder offer student discounts for cheap food and low-cost entertainment. Your student could research local deals before heading out with friends.

Encourage your student to re-visit their budget regularly to check-in with their spending and make adjustments as needed.