Article Contributed on: 1/13/2009 2:20:30 PM
I had the opportunity to ask college students this question, "What one thing would you have liked to have known before going to college?" The answers varied and I hope to share some insight in the this and the next few blogs.
The "value of money" was one I found interesting. It isn't just about "not having any" money; it is more the realization of what things cost. One hundred dollars is a large amount of money, but when you are out on your own in college, that hundred doesn't buy as much as you thought it would. When you are a high school student living at home, most of the money that you have goes to buy "stuff" that you want. The things that you take for granted are items like laundry detergent, toothpaste, shampoo and food. So when you are in college and you run out of these items, the realization starts to hit. If as a college student you have $100 for personal items and you go to the store to find out laundry detergent is $10, toothpaste is $3 and so on. A hundred dollars doesn't go very far and there's not much left for any "fun" stuff.
I think the perspective of a high school student going to college now isn't much different than mine was a couple of years ago (ok, it was more than a couple, but it still holds true). When I was in college I had about $200 a month for "personal" items, which included the stuff mentioned above plus eating out or whatever. I was shocked the first time that I went to the grocery store and bought cereal, milk and pop tarts. I spent $100! I had three more weeks to go and only $100 left, how was I going to manage? I remember taking a budgeting class in high school, we had checkbooks and had to write checks and figure out what to spend. Somehow it just doesn't hit home until it is your money and it is in your wallet.
So not to leave you with a sense of dread, I have a few suggestions. If you have a high school student, consider putting them in charge of the grocery shopping. Sit down and determine a budget based on the "normal" family spending. Talk about the time and money involved; make it their family job to make sure there is food in the house. There may be some bumps in the road, or five boxes of pop tarts in your cabinet, but it will be a great lesson.
Another option that may be less traumatic on the family is if your student gets an allowance, talk to them about paying for things that they don't pay for now, but might have to in college. For example, the detergent and personal hygiene products mentioned above or something more significant like gas or car insurance. Helping them understand the value of money when they are still at home can lessen the shock when they are on their own.
Remember, you can put your two cents in but if someone will only give you a penny for your thoughts, I want to know who gets the extra penny?!?