Empowering Your Student: Money Management
// By JACEY CRAWFORD ’21
College may be the first time your student experiences managing money all on their own. While this can be an exciting freedom, it’s also a difficult responsibility. Set your student up for success by ensuring they have a basic knowledge and understanding of money management. Below are some of the skills your student should master before they fly from your nest to ours.
Managing a credit card – Although it’s a privilege that’s easy to abuse, having a credit card early in life is vital for having a good credit score, and a good credit score is vital for future apartment-renting, car-purchasing, etc. Having a credit card can be dangerous, so make sure your student understands how to set their spending limits, how to pay their credit card bill on time, and when they should use their credit card.
Understanding taxes – While your student likely doesn’t need to know all the intricacies of the IRS, they should know what a W2 is, what a W4 is, how to file taxes, and the difference between state and federal taxes. Even if your student will be using a service that handles their taxes for them, it’s important that they understand the basics. At AU, we offer classes in the Falls School of Business in which your student can become well-versed in the arts of taxes and personal finance.
Understanding student loans – Student loans can be a great way to make college tuition affordable, but make sure that your student knows that a loan isn’t free money — all borrowed money will have to be repaid at one point or another. If your student takes out a loan, they should have a tentative plan for how they will pay it back. Additionally, it’s vital that your student understands the difference between unsubsidized and subsidized loans.
Budgeting – It’s the dreaded word every college student hates to hear, but it’s critical to your student’s financial success. While a strict, every-cent-accounted-for budget may not be your student’s style, it’s important that your student knows not to spend all their hard-earned money at Taco Bell. Beyond budgeting their real money, your student will also need to know how to “budget” their Raven Dollars across the course of a semester.
Anderson University is on a mission to educate students for lives of faith and service, offering more than 60 undergraduate majors, 30 three-year degrees, 20 NCAA Division III intercollegiate sports, alongside adult and graduate programs. The private, liberal arts institution is fully accredited and recognized among top colleges for its business, computer science, cybersecurity, dance, engineering, nursing, and teacher education programs. Anderson University was established in 1917 in Anderson, Indiana, by the Church of God.