Learning How to Budget for College.

• Position: Brief Article

For many youths, attending college is the first time they are on their own. It is also often the first time they have had to manage their money beyond a simple allowance and perhaps car payments. Thus, it can be a good time to teach them how to manage all that money they hope to make after they graduate. The Financial Planning Association, Denver, Colo., offers the following tips for parents of college students:

Work together. Before they head off to school, sit down together and prepare a budget. Just the act of putting it all down on paper, or on the computer, will give them a better appreciation of the high cost of college and get them to think twice before spending money.

List all income sources. Include work-study, a part-time job, loans, money earned by the student during the summer, and/or a monthly allowance from you.

List any realistic expenses. This can be a little difficult to gauge before the student goes off to school for the first time. The college should be able to provide some guidance, at least in round numbers, about what it costs on average beyond the major expenses of tuition, books, and room and board. The task will be easier if the student is staying in a dorm, but even there, many overlooked expenses may crop up, such as concert tickets, late-night pizzas, and weekend football games. If the student lives off campus, there may be cable-TV and telephone bills, groceries, and much more.

Who is responsible for what? One thing you will need to determine is exactly what expenses the student will be responsible for and what you will cover. Parents commonly receive the big bills, such as tuition and room and board, but will the student take care of clothing, books, fees, non-dorm meals, toiletries, auto expenses, etc.? If living oft campus, what expenses are he or she responsible for? Even if you kick in much of the living expenses, such as rent and groceries, the student likely will be responsible for paying those bills. Should you send money each month, each quarter, each semester...