Budgeting is one of, if not the most important life skill one can learn. As they grow up, you may have been able to teach them valuable budgeting and saving skills, but when they leave home for the first time, often to go to college, it’s time to put that teaching to the test. With the freedom of living away from home comes the responsibility to take care of themselves, including their financial health.
So, make sure you remind them of important budgeting tips so they don’t find themselves in patterns of overspending that can affect them in college and beyond.
Remind them that needs are different from wants. They’re old enough to decide on what’s a need and want, but make sure you relay the consequences of mistaking a want for a need. When they’re on their own, they may not have immediate help if they’re short on money to pay for a need.
Your kid or grandkid may also pursue an on- or off-campus job. Earning their own money is a great way for them to learn what it’s like to earn their way in the world and to develop a sense of ownership and protection of what they’ve earned.
Before they leave, help them set savings goals and help provide them with a place to save or invest. While there’s value to jumping into the deep end, something as important (and as complex for an eighteen-year-old) as saving and investing in their future should be taught with care to ensure it’s as easy as possible for them to practice good financial habits.
Also, expect and leave room for mistakes. College is a time for learning in all regards. Make sure you’re as prepared as possible when they make a mistake or need help. Their missteps now will be the building blocks for their growth and success in the future.
When revisiting the basics of budgeting, you may be reminded to ask these same questions about your own financial plan. When it comes to retirement, it’s not simply about budgeting, and it often takes a financial professional to make sure your finances are working to meet your goals. Contact us at (540) 720-5656 to get started with one of our financial advisors.
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Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. Megan is also a fully licensed Life, Health, and Annuity agent. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.
Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.