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AS MY TWINS DEPART for college, they leave behind a home base where they find food in the refrigerator, get new clothes and shoes when needed, have bills paid and extra-curriculars funded, and receive a small weekly allowance to save or spend.
Now, they’re headed far from familiar security. They gain instead independence and the opportunity to explore other ways of living and spending, all part of their higher education. Cold cereal for supper? An extra pair of jeans instead of a recommended second textbook? Out for coffee with a friend or perhaps a show and dinner? A part-time job or a double major?
I’ve got a dollar figure in mind for expenses I’ll be covering, beyond tuition and housing that’s already paid. One twin’s housing comes with a meal plan. The other’s dorm room has a kitchenette. That one will need to include food in her budget.
I’ve made my estimate for their first semester and will add money to their existing credit union accounts once a week. Each has a debit card to take to college. This way, I imagine they will mostly use their incidental money appropriately, making minor miscalculations early on that can easily be corrected.
If one twin finds my frugal estimate too low, she can contact me, and we can strategize why that’s happening and adjust the budget accordingly. If I’ve estimated correctly, it’s possible I might not hear much from either twin until the holidays, when I hope both will take a break from school for a visit home, where they can regale me with tall tales. Putting a thumb on the scale, I’m buying the roundtrip tickets home now—before they leave.
We spent years getting ready for college. Solid refi, paid off lots of debt, Heloc for whatever our cash flow didn’t handle, sold our newish car and let our leased car go, bought two ten year old toyotas. The bad news is the 7 years or so we spent heavily focused on this but barely breaking even (lots of solid reasons, including roof replacement, but still). The good news is the past 2 years when all the cash flow improvements seemed to manifest all at once.
When it comes to your kids, I suspect you know pretty well beforehand just how tightly you need to restrict their spending. Debit cards are a good solution for a wide variety of situations. Our oldest is terrible with money, but luckily really doesn’t want much, so the result doesn’t look very different than if he were good with money. Our youngest is very strong in this area, and handles a budget with no issues.
No expectations of better than average ROI here. I am thinking of college as more of an “expenditure” and not an “investment” in the traditional sense of the word. One with a far out payoff anyhow and too many externalities to predict outcomes.
Days away from first departure and the house is static with nervous tension. I’m now in the mode of trying to temper their concerns, and mine. It’s too bad college now seems so costly since high school students are told it’s essential.
80% of what you learn in college has nothing to do with academics. And based on the nonsense going on today keep a sharp eye out for the nonsense infiltrating their minds. Never, ever, be reluctant to bring them back to reality. Parenting never ends.
You may be generous in allocating the universities 20%.Though for some students it might be the other way round. Based on temperament, passion, readiness, and the time and place. And the student’s capacity and engagement with faculty during office hours, engaging in cocurriculars and extracurriculars.
I am encouraging them to have something of a skeptic’s mindset and a sense of humor about it, and look for evidence that confounds their ideas as well as that which supports it. Really, hoping for an old-fashioned “well-rounded” education. Out of 4500 colleges and universities, if these two don’t work out, despite our effort to select good fit, I see transfers in their future.
I’ll bet they are better prepared to manage their finances than most of their peers. Assuming that the apple(s) do not fall far from the tree.
Thank you! Hope most of this generation of young adults can get educated within their economic means.
Twins went to the movies with friends last night to see “Lady Bird” on the big screen. One came home grateful that I can accompany them to move in day unlike Lady Bird who was dropped off at the local airport at the end of the movie. “I guess her family couldn’t afford the extra plane ticket,” they said. A recognition that for almost everyone, there are limits.