4 Things You Need To Teach Your Child About Banking Before They Start College

When packing your kids up to leave the nest, it might seem daunting that they’re already such adults. Before they head to their first year in college, there are some life lessons we want to impart with you for your children about banking. Make sure they head to college ready to face the real world in a responsible manner. Here is a great financial toolbox to navigate your child’s college finances and loans.

Put A Little Away Each Month

While many student’s work throughout their college careers, if this is not the case your child can still be saving every month. Encourage your child to deposit all of their loose change, or a few spare singles every week. Not only is this a fantastic habit to start so early, but this seemingly insignificant amount will rise exponentially if interest rates apply.

Evaluate What Works Best for Your Child’s College Situation

College students have completely different financial needs than those of a high school student, and this change should be met with new banking products and services to help them save their money.

Little insignificant out-of-network ATM fees and monthly fees can start to increasingly add up over time. A favorite financial device for avoiding these pesky fees is MoneyLion, a free application for smartphones. With MoneyLion, your money stowed in your checking is insured to stay your money, with zero ATM fees, overdraft fees, or monthly service fees. MoneyLion is available through 55,000 fee-free ATM’s across the globe.

Additionally, with MoneyLion, your children will be able to invest just as easily as they can deposit money in their accounts. It offers a free investment tool with no trading fees, where your children can add as much as they desire. This is a fantastic first step for your child to get a feel of what investing their money will really be like, even if it’s just some spare change. They will watch it grow!

Teach Them To Avoid Unnecessary Spending

The most rookie mistake we see with college students is trusting their university bookstore prices. This is a tourist trap for knowledge, and essentially the most expensive place possible to find your children’s books.

Try online websites such as Amazon AMZN and eBay EBAY to find the same product for half the price. Oftentimes, you will be able to find services that allow you to borrow your books and return them at the end of the semester for a fraction of the price. Or go old school and try your local library for free.

Balancing A Checkbook

This is a valuable life lesson that will go a long way for your children in college. Teach your children how to record all deposits and withdrawals in a checkbook to keep track of their own money. Not only will this be a good way for your children to value the dollar, but it will instill in them a sense of how much they have at any given moment.

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