Today’s episode I return to discussing budgeting, finances, and planning with your daughter. At the time of this recording here in the Unites States, many high schools seniors are getting ready to graduate within the next month or so. This is an exciting time for many families and can also create emotions of sadness and worry. Over the last decade, I have worked with many teen girls and their parents in navigating this transition. One specific area that I continue to discuss with parents and their daughters is budgeting. As I discussed in episode nine if you haven’t already explored your beliefs around money I encourage you to do so you can help your daughter understand why you do what you do. For example, parents and caregivers what were you told about money growing up? Did you change some of your spending or saving behaviors after you were more aware of those beliefs? Many girls I have worked with over the years struggle with impulse buying or having watched adults in their lives live beyond their means. If this is you I am not judging you, but encouraging you to take charge of your money vs letting fear, denial or avoidance run your finances.
In this episode you will learn:
- Scholarships and financial aid
- Why a budget for going to college is important
- Rescue or not rescue when daughter goes into debt
Scholarships and Financial Aid
- Attend college night at your daughter’s school to get support with deadlines, processes, etc
- Speak with school counselor or college counselor at daughter’s high school
- Process usually begins Junior year
- Free application for financial student aid or FAFSA-website gives deadlines and more
- Parents speak with your companies HR department to find out about possible scholarships either locally or at corporate level
- Apply for multiple scholarships or grants because this is money you do not have to repay unlike a school loan or financial aid you do. There are scholarships for academics, sports achievements, specific ones for females, minority females, or if your daughter is going into a specific field such as technology or engineering.
- Fastweb website had a couple articles on scholarships just for women. Deadlines are passed for majority of them but give suggestions on where you can apply
- Check out if the college your daughter is interested in if they gift aid funds to families. Some colleges do and others don’t
Why a budget for going to college is important:
- If your daughter is living on campus – she will need additional spending money
- If she wants to go for pizza, participants in a sorority, attend dances, etc.
- Discuss a monthly dollar amount you will put in a savings account for her or how much she can charge on a credit card
- Parents if you are not able to give additional funds, then she will need to get a job or do a work-study program to help with additional costs.
- It’s a life skill
- If doesn’t live on campus she has rent, utilities, and food expenses
- Is she keeping a car on campus? Gas costs, car insurance
- Have a family meeting
- When she completes college and moves out of family home she will continue to use money management skills taught
- Job can help her not only with time management but also gaining better understand it takes time and effort to make and save money
- Have a limit of how much debt she will take on
- Be honest with her on what you will pay for and if that is zero let her know
- Check out Net Price Calculator on the college website-use as a guide vs it will be guaranteed that cost.
Rescue or Not to Rescue:
- Discuss expectations and consequences if your daughter takes her savings account into the red or is overdrawn or uses the credit for something other than agreed upon
- Does she need to pay the fines or will you and she will pay you back?
- If she continues same behavior what is the plan? Take the credit card?
- Enabling a negative behavior not only doesn’t help a person with being accountable for their choices it also impacts you.
- I often hear parents rationalize it is “okay” that they are paying for items their daughter wants, but they can’t afford it or puts them in the red.
- Creating a budget helps keep healthy boundaries around spending and money management
- Helps with letting go of keeping up with everyone else and staying out of debt
- Financial advisors remind parents that there are no loans for retirement
Scholarships article for women
Another article on Scholarships for women