Teach Kids About Budgeting Before Paying for College
When I went to college (much earlier than I’d like to admit), my dad and I struck a deal where he would cover 90% of the tuition, room and board costs, provided I kept my 3.0 GPA and stayed in place. We talked to any boys, and we sat down before each semester and discussed my career goals and financial plans after college. This last part I hated when I was 18, but I think this is what helped me succeed, and I would recommend doing it to anyone who pays for their child’s tuition (or even if you don’t).
His idea was pretty simple: he wanted me to work towards getting a degree in something that would give me a job when I graduated, where I would make enough money to have the life I wanted / expected. I had a job since I was 16, so I had a good idea of how long it would take to make money. I didn’t have a solid understanding of things like rent, electricity bills and insurance … everything that I was responsible for around the time I walked across the stage to accept this diploma.
Step 1. Find someone in my desired career
Every year I had to find someone who was currently working in the profession I wanted and tell them what they have done to achieve what they have achieved today. Like most college students, my dreams of the future changed several times while I was in school, as did these kind of mentors I found along the way.
However, every year I had one that was very helpful in exploring my desired area. For example, when I was studying at Theater Teacher, I learned that most elementary schools in my home state (where I wanted to teach) do not have full-time theater teachers, so I would look for a part-time job in the best and it will be difficult to find this job. With others, I realized that I would probably need graduate school before I could actually get to work.
Step 2: Find three vacancies that I could apply for with my degree
This one was difficult, but it definitely gave me a feel for what I have to face four years later. I learned that some jobs will require me to move, often to places where I would not want to live. Others included job descriptions that didn’t interest me. When you are 18 and have never looked for a “real job,” it can open your eyes to see what vacancies actually are and what when it came to hiring for that job, employers were looking for experience.
Step 3. Make a budget based on your starting salary
My father had absolutely no desire to support me after I graduated, and because of that step, he didn’t have to do it. Each year, I had to draw up a monthly and annual budget based on the starting salary at work, which I could get right out of school.
The budget was one of those things my dad and I talked about a lot. For example, I didn’t realize that health insurance was so expensive, or that I would have to spend so much on things like electricity or cables. Of course, I knew there was a price tag attached to all of these things, but they were never the invoices for which I was responsible. It was extremely helpful to write all this down and understand how much I need to earn in order to live in the apartment where I would like to live and live the way I wanted. And actually look for these apartments and realize that my starting salary will not allow me to buy a house like the one I grew up in.
Every year around this time we sat down and discussed everything. As a teenager, this was a huge problem, but I still remember the things that contributed a lot to my overall success in life. I need to spend some time with my dad, talk about my plans for the year and get advice from him on what I can do better.
As it turns out, I got a job right out of college that my dad and I had never talked about in years. However, I was much better prepared for this job and for the world, and knew exactly what I was getting myself into thanks to our annual talks.