"A small leak will sink a great ship."
Elliott packed his car and left for University of South Carolina to start his junior year. He is not alone. This time of year, many young people are hugging their parents goodbye and heading off to college for the first time. For parents, it’s exciting and bittersweet. For the students, it’s a new chapter — freedom, responsibility, and, whether they realize it or not, their first real test in managing money.
This got me thinking, what financial lessons should a young adult know? If you have a son, daughter, or grandchild heading off to school, here are a few nuggets to share before they drive away.
1. Budget like you mean it
Most college students live on a mix of money from home, part-time jobs, and financial aid. It’s easy for that to disappear quickly if they’re not paying attention. I suggest a simple plan: know your fixed expenses (rent, phone bill, subscriptions) and set a limit for variable expenses (food, fun, transportation). I’ve seen students spend their semester’s food budget in the first six weeks — not fun when ramen becomes your only dinner option.
Lesson: Tell your money where to go, or you’ll wonder where it went.
2. Use credit cards wisely
Colleges are prime hunting grounds for credit card offers. A little plastic can help build credit, but unpaid balances grow faster than weeds after a summer rain. Encourage your kids to charge small, budgeted purchases and pay them off in full each month. This builds credit without building debt.
Lesson: Interest works for you when investing… and against you when borrowing.
3. Learn the difference between wants and needs
A want feels urgent in the moment. A need sustains you over time. At 19, “need” often means concert tickets or the latest fashion trend. That’s fine in moderation — but understand the difference.
Lesson: Waiting 24 hours before buying something can save both money and regret. The larger the item, the longer to wait before deciding.
4. Find and use student discounts
Software, bus passes, gym memberships, even restaurants — all offer student rates. Just showing a student ID can save hundreds over a year.
Lesson: Ask. The worst they can say is “no.”
5. Save something — anything
Even $10 a month matters. In college, it’s more about building the habit than the amount. Over time, that habit becomes a powerful ally.
If they have earned income from a part-time job, start a ROTH IRA. They are so young, and that means the money can compound for so long.
Lesson: The habit of saving is more valuable than the amount you save at first.
6. Understand your loans before you sign
I’ve met graduates who didn’t know when interest on their student loans started adding up. Some loans begin accruing immediately. Even small interest payments while in school can reduce the total owed years later.
Lesson: Future you will thank present you for reading the fine print.
College is about more than classes and grades. It’s about learning how to navigate life. Helping your kids start smart with money doesn’t just make their four years easier — it gives them a head start for the next forty.
