In just two weeks, I’ll drop my stepson off for his first year of college. We’ll miss him intensely, but we’re also excited for his adventure ahead.
We started planning for college in his freshman year of high school, discussing finances almost as much as academics.
Why? In the US, college is typically the second-largest investment after a home. It can be an excellent investment – Forbes reports a 20-year ROI of 13.5% to 36%, beating average stock market returns.
However, college is eye-wateringly expensive. My stepson’s pre-scholarship tuition is nearly the average US annual income. Even with aid, college costs can crush families with debt.
As he starts college, we’re focusing on his personal finance management. He’s naturally frugal, but to help him plan his spending, I customized a Tiller-powered Monthly Budget Calendar with due dates for tuition and bills, plus school breaks, cultural events, and travel days where he’ll need to be prepared to spend more.
The calendar will track his actual spending over the entire academic year, with budget targets for each month. The cal is shared in Google Sheets, so his mother and I can keep up with how he’s doing. Not to snoop – we trust him – but to guide our future conversations about money.
After all, financial preparedness is one of the main reasons he’s going to college.
How will you help your kids manage college finances? Or how did you? Any specific apps, tools, books, or other resources? Share your tips below!