Getting ready for college is everyone’s first major milestone. As a parent, you remember how you felt preparing to embark on your college journey. The excitement, the pressure, and the feeling of indecisiveness as you considered what degree you should pursue. These are all things your child is experiencing right now. What’s more is that you know full well how stressful college can get at times and you don’t want your child to become overwhelmed. However, this is where you can step in to make the process easier to manage for them. In this article, we’ll be going over a few tips for helping children prepare for college.
Help Them Understand the Importance of Budgeting
Money makes the world go round. This is a saying that has been used for decades, and for good reason. Money is what ultimately opens opportunities for us, including college. However, many teenagers and young adults are often surprised by how quickly their funds can vanish. But that doesn’t mean they should let it happen. One of the most common reasons why a person’s finances can disappear so quickly is due to a lack of budgeting. Budgeting is one of the most important life skills anyone can have. It’s how your child can stay on top of what’s being spent, so they can save more as a result. As you prepare your child for college, give them some pointers on how they should budget. Going over the 50/30/20 rule is always a great place to start.
Cosign on Their Student Loans
It’s common knowledge that college degrees are some of the most expensive investments you’ll ever make. Taking out student loans is pretty much everyone’s first time dabbling with their credit. As you know, one wrong move can cause your credit score to plummet. You obviously don’t want your child to ruin themselves financially and there’s no better way to do so than by becoming a cosigner.
Getting a student loan with a cosigner can make it far easier for new students to be approved. On top of that, having a cosigner with an established credit history can also reduce the interest rates. Interest rates are ultimately why student loans can be so difficult to pay back. They can change when you least expect them to, so having a cosigner can remedy this issue. However, it’s important to remember that becoming a cosigner requires a lot of trust on your end. If your child, the primary borrower, doesn’t make a required payment, that responsibility falls to you. A missing payment occasionally isn’t going to do much. But if it’s constantly, it can negatively both your credit score and your child’s.
Browse the Degrees Together
Since going to college is a momentous occasion, it’s only natural to want to experience it together. Browsing the near-limitless options of degrees and choosing a major as a team is a great way to kick things off. With so many opportunities available, it’s common for new students to feel overwhelmed about what they should study. You can help them come to a decision quicker by offering advice and assessing where your child would be in their element.