VANCOUVER (NEWS 1130) – As many students head to college or university next month, they’re set to take in plenty of knowledge.
According to a financial advisor, it’s also a good time in life for them to learn more about personal finance.
For many of these students, this will be the first time they’re living away from home. David Lee with Blue Shore Financial says it’s worth talking to your children about making a budget and sticking to it.
“A lot of the parents need to start looking at trying to help their kids with financial independence and not banking on mom and dad as the strategy. The best gift is giving an education to the children, and this is pretty much giving them the active control with managing their finances.”
This all includes how to make a budget and have discipline around spending.
“One of the things that a lot of students are used to is going out to be able to eat,” Lee tells NEWS 1130. “However being able to save some money by staying at home and cooking their own food definitely will go a long way. You will realize that within your own budget in terms of being able to have more money in your wallet.”
In many cases, he says students underestimate living costs, or even how much things like textbooks will cost.
Lee adds it’s also worth discussing what type of bank account or credit card makes sense given a student’s needs. “Specifically accounts that are lower fees so they aren’t spending a lot of money while they’re in university.”