Planning for Back-To-School

There are many changes occurring as millions of us head back to school. With so many changes, it is a good time to review financial plan. It is also a good time to discuss financial responsibility with children whether they are going off to college or starting Kindergarten.

During this time of year, it hit home just how much we spend on getting kids back to school. There are new gadgets to buy, clothes, shoes, school supplies, books, tuition, etc. that we spend our money on during back-to-school time. It is important, especially this time of year, to set a budget and keep it. Showing kids how to be financially responsible can start at a young age, and the knowledge will prepare them for the future.

To start create a family budget that include money for the extras of back-to-school, and keep to the limit set. If children are old enough to have and use credit cards, set a responsible limit, while allowing them the freedom to choose what they want to buy. A good way to do this would be to give them a prepaid card that has a specific limit. When the money is gone, it is gone. Make them earn more before you put more on the card.

Teach children to protect their personal information. Anyone at any age can be exploited and be a victim of fraud. Teach them to use secure passwords, and only use social security numbers if required.

For parents of children of any age, it is time to start a saving plan for college. It is never too late to start and never too early either. College can be financially draining to the college student and parents. By planning and saving even a little, it will help alleviate the cost burden of college. If starting early enough calculate cost for tuition, books, housing, etc. and set your saving to reflect the cost. Periodically check the total and adjust where needed.

By taking some small steps, financial responsibility can be achievable for anyone, including children and young adults.

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