Ensure your child is prepared financially with these three money lessons from Busey. The best part is your student doesn’t have to pull an “all-nighter” to learn the basics. Class is in session. Let’s begin!
Lesson #1: Budgeting 101
Draft a “real world” budget—especially if your student lives off-campus and is responsible for paying for rent and utilities. Here are tips to help them plan and stick to a realistic budget:
Determine their income and when they will receive it.
Discuss needs versus wants.
Figure out how to split expenses.
Warn your student not to spend too much too soon, especially if the money has to last the entire semester.
Show them how to track spending by saving receipts and logging expenses and encourage them to monitor their activity.
Lesson #2: Opening a Bank Account
Simplify your search for a checking account for your student. Here’s a checklist of four must-have features:
A simple fee structure
ATM or debit card access
Mobile or online access
From a free debit Mastercard® to online banking with eStatements, the Student Relationship Pack from Busey has just the right mix of products and services for your student. With access to FinanceWorks, they can also keep accurate records and prevent overdrawing their checking account.
A savings account is a must if they have a part-time job during the school year or summer. Encourage them to save any extra income. After all, there is life after college.
Lesson #3: Getting Credit
A credit card can provide security in a financial emergency and, if used properly, can help your student build a good credit history. Here are tips to help them use credit responsibly:
Advise your student to get a credit card with a low limit to keep balances down.
Explain that a credit card isn’t an income supplement; what is charged is owed.
Teach your student to review each credit card bill and make the payment by the due date.
Make sure they notify the card issuer of address changes.
When it comes to creditors, students don’t get summers off. Your child will need to continue to make payments every month.
Remind your child that life after college often involves student loan payments, and maybe even car or mortgage payments. The less debt after graduation, the better.
Whether you’re a college student or a career professional, Busey is here with support and resources to achieve your financial goals. Visit one of our many convenient locations today, email WealthManagement@Busey.com or call 1.800.67 l Busey.