Helping college students learn to save
Survey: Only 46% of college students actually track their spending
RICHMOND, Va. (WWBT) - First-time college students learn this lesson quickly: Every dollar counts. A new survey from Bank of America found 61% of college students practice saving, but only 46% actually track their spending.
If it’s your child’s first semester away from home, they are learning quickly about the value of budgeting. Whether they realize it or not.
A Bank of America survey found the top expenses college kids face, including food, transportation, entertainment and of course, their phone bill. This is why Candice Haggerty with Bank of America often helps teach young people the ins and outs of budgeting.
”Only about 45% of our students have a budget, while almost 60 percent say they’re financially independent. 2:18 they really haven’t sat down and put pen to paper,” Haggerty said.
Haggerty, who’s responsible for 16 financial centers in central Virginia, says it’s why budgeting lessons for young adults are so important to pass on. She says you have to teach them to categorize their spending into wants versus needs, then compare it against their income to find opportunities to save.
“You know instead of buying Starbucks 5 days a week, maybe do it one day a week and take that extra $20 and budget that for something else like unexpected expenses,” Haggerty said.
Haggerty says instead of using Uber to get around everywhere, they could walk or carpool with other students. Find little ways to save and always teach them to pay themselves first.
If they start automatically saving 10% or 20% of their paychecks now, that could be the most valuable lesson they learn in college.
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