Consider these skills that will help your teen to put some of his or her own money into a college savings fund.
Practice Handling Small Amounts of Money
If your teen is still young, such as in the tween years or just 13 or 14, this is a good time to help your child with handling small amounts of money. For example, if your young teen wants a new video gaming system that costs a few hundred dollars, help your teen to figure out how to earn the money and save it as he or she earns it. If your teen babysits and earns $100 per week, help him or her to write up a budget for buying the $400 gaming system.
Another good way to help your teen handle small amounts of money is to give him or her the $200 for school supplies and the list of required items. Let your teen go to the store and get what is required with the allotted amount.
Try Online Public Homeschooling
Online public homeschooling will help your kid to develop essential skills such as the math that is needed in order to write out a budget. Your child could also learn how payroll taxes work and what to expect out of his or her first paycheck at a job.
With online public homeschool, a teen will also learn valuable skills such as planning ahead. This could help your teen to look to the future rather than only focusing on what is happening right now. Participating in online homeschooling could also help your teenager to develop essay writing skills that could help with scholarship applications. Earning scholarships could help your teen to reduce the out-of-pocket costs of going to college.
Show Your Kids How to Make a Budget
In many families, parents do not talk about the finances with the kids. When you tell your child that you can’t afford a trip to Hawaii or the newest smartphone that all of his or her friends have, it helps to prove why you cannot afford it. Show your kids what the income is and what the expenses are. Write it all out in the form of a budget. Include the amounts that you save for retirement and the irregular expenses, such as house repairs and auto repairs. This will show kids that the essentials, such as housing and utilities must come before vacations and entertainment.
Help Your Kids Start a College Savings Account
Consider establishing a 529 college savings account for your child. You, a grandparent or your child himself or herself could open up the account. The contributions to the account are tax deductible in some situations. Your child’s account can be used to pay for college expenses such as books, tuition, fees and room and board. Consider setting up regular contributions of a set amount through automatic withdrawals from a bank account.
If your child will be the one contributing, irregular contributions can still be helpful. For example, your child could put in his or her summer earnings from babysitting, lawn mowing, dog walking, and other jobs as he or she moves through the teenage years.
When your teen shares in the responsibility of saving for college, he or she might be more likely to appreciate the experience. Your child will also benefit from the ability write and follow a budget. These skills will be key to his or her financial success during the adult years.
- Sergio Garcia PhD
- Publisher: Green Jay Publishing
- Edition no. 1 (10/15/2015)
- Joseph F. Hurley, Kathryn Flynn, Matthew Toner
- Savingforcollege.com Publications
- Kindle Edition
- Joseph F Hurley
- Publisher: Savingforcollege.com Publications
- Edition no. 11 (08/15/2015)
Last update on 2019-05-31 / Affiliate links / Images from Amazon Product Advertising API