Money Matters

Unless you are comfortably wealthy, most parents these days are using up their retirement portfolios, giving up restaurants, vacations, new cars and any other perk that one usually looks forward to in mid-life, to pay for their kids to go to college and have the freedom from debt as they start their young adult life. And most parents I know who do this, do it freely and with love.  It is only when the semester grades start coming in, or the epidemic of changing one's major multiple times, that requires students to take additional courses (read more money) for their interest of the year, that parents start to wonder about the return on their investment. Many students I know are now on the 5 year plan due to flunked classes, need to make up credits or change of heart in what they want to study or do with their life. And because they have not been a part of the financial planning for their college career, and because they live in a fantasy world when it comes to money, and because many parents are afraid to talk money with their kids, they are not taking much responsibility for these decisions. Kids seem to want more, fancy phones, expensive video games, unlimited supply of clothes, and parents work hard to give them more. We aren't doing them any favors. Before they go to college is when they need to learn the meaning of money.

How many of your kids have any idea what their phone bill is, or their computer or cable bill that allows them to order movies on demand without regard to the extra $6.99 that appears on your bill.
How will your teens ever develop an appreciation for what things cost unless you teach them. I am a big advocate whether you are a family of means or a family where you need to count every penny, that you have a monthly date to go over the bills. Let them see just how many movies they did order and what the cost was. How much their portion of their cell phone cost. Dollars and cents, they need the reality. So much of teens lives in this 21st century make it easy to live in lalaland. They can say things without consequence through impersonal devices, they can order things without using the old fashioned greenback, and so it is no surprise that when they go off to college with a car full of new clothes and comforters that it feels magical. They absolutely need to know that college can cost up to $50,000 a year, and that is a sh**load of money.

Start teaching them now. They may not have to pay the bills, but at least let them know that it all costs the real deal...money. Maybe there is a limit on downloads and uploads, and scanning the bills together you develop some budget items. Let them know that mediocrity is not acceptable for college when everyone in the family sacrifices for their ability to go. A little guilt never hurt! And more importantly, obstacle and challenge make the journey to success so much more meaningful.