Send Your Senior Off into the World on the Right Foot

For the last twenty-something years, your college student—for the most part—has been under your care. This means they have been under your “financial” roof. And while they may have had a job to help with expenses, such as car, gas, cell phone, extracurricular activities, etc., they have really no idea what the cost of living in America actually is. Help give them an idea before they head out into the real world, so they are not in too much of a shock (You have to pay for garbage pick-up?!).

Oh Yes, It Costs Money

Most seniors have no idea what things “really” cost. They have lived in this bubble for so long that they don’t realize how much leaving the lights on all day adds up, that food for the week costs more than $20, and that water is not free.

One way to prepare them is to teach them how to save. Hopefully, at this point in their lives, they have no debt. And, if they do, it is only student loans. Show them how to save a portion of their paycheck each month for emergencies, etc. Explain how this will benefit them in the future, so they will not be one of the many who owe on average $7,281 in credit card debt alone (according to the Federal Reserve and other government statistics).

You also need to show them how to properly set a budget. This “keeping up with the Joneses” is for the birds, and not for them. It will only land them in trouble, and you can’t take all the material items with you anyway. Teaching them to live within their means will be a valuable lesson that will last a lifetime.

Remember, you were in their shoes once. What would have helped you get a better grip on the real world financially?