Before you send your children off to college in the fall, set some time aside to speak with them about managing their personal finances. While some young adults will have already had a crash course in finances by having a part-time job while in high school or working to help pay for college, a good majority of students will head off to school without a lot of first-hand knowledge of the potential pitfalls that can await them out in the world.
St Anne Credit Union in New Bedford has a lot of great tools that you can use to help you teach your kids about responsible saving and spending, lessons that they will carry with them for the rest of their lives. From the basic credit union savings account that must be opened to join a credit union to checking accounts, auto loans, money market accounts and other financial opportunities that will help young adults get a good head start into the world of personal finance.
To help your college student get on the path to good financial health, it all starts by opening up a local New Bedford Share Savings account. All it takes is $25.00 to open up a regular credit union savings account to launch your membership at St Anne Credit Union New Bedford. This establishes your membership and then opens the door for your child to open up other types of savings accounts, get loans or open up a NOW checking account. Interest is paid and compounded monthly with our Share plans and is paid from the day-of-deposit to the day-of-withdrawal. For details on interest rates, speak with a New Bedford credit union representative at St Anne.
According to a recent survey that was published by a national credit counseling organization, most adults today say that they learned more about personal finance from their parents than they ever did in school. As parents, you have a moral responsibility and an amazing opportunity to lead by example and teach your children about managing their finances at St Anne Credit Union New Bedford. Make sure to teach them about monitoring their accounts via online banking and e-statements, as well as pointing them to SUM ATMs, which can be found all over Massachusetts and across the country, are fee-free for members of this popular New Bedford credit union.
Create a Budget
Whether your college bound child will be working while in school or if you will be sending him or her a monthly allowance, it is important to create a monthly budget and stick to it. Many jokes are made about “starving” college students who live off of energy drinks and Ramen noodles, but with a proper budget and account monitoring of your credit union savings and checking accounts, that doesn’t have to be the case. It is a lot of work and will take discipline, but even if your child makes a mistake, remember that this entire experience is a learning opportunity and even errors in judgement can stick with them in a positive way.
Talk About Credit – When kids go off to college they become inundated with all sorts of offers for credit. Store credit cards in particular are a huge temptation for young adults. Imagine being able to buy all the clothes, make-up, electronics and music you want without having to pay for it right away! Sit down and have an honest conversation with your children about credit, using credit, what to watch out for with credit and about paying bills on time and in full every month. Better yet, teach them the importance of being debt free and putting money into their credit union savings account and only making purchases when they can afford them.
Sit down with your student to talk about how much money they will have for expenses. For most college kids, this will be their first time living away from home and it can become overwhelming. There are temptations everywhere to blow money on parties, clothes or going out with new friends. It is easy to blow an entire month’s budget in just a week or two. Work with your child to create a budget that includes their monthly income, student loans and expected expenses for classes, supplies, food, dorm fees and other costs. Knowing how much they have coming into their New Bedford credit union account and how much is going out will help them curb overspending temptations and stay in control of their budget.
Open a New Bedford Credit Union Account Today
There’s no better time to start teaching your child about personal finances than right now. Whether your child is in middle school, high school or preparing to go off to college, it is always a good time to set a good example and provide a solid life lesson. Contact St Anne Credit Union in New Bedford to find out more about our credit union savings, checking, loan and investment opportunities. Call us today at 508-993-0011 or stop by our local New Bedford credit union today in person!