Why Students Need to Open Accounts Before Starting College
As we wrap up the 2012 Delta Community CU Scholarship program and announce the three winners that will receive $5,000 toward their college education, I can’t help but think about all the applicants we had this year - each with a slew of academic accomplishments and essay submissions that spoke of their hopes and plans for future. They might not know it yet, but they’re about to face tons of new experiences and responsibilities as they leave the familiarity of home for the unchartered waters of higher education and the new freedoms that come along with it.
Some of these freedoms involve various degrees of financial responsibility, with a number of teens getting their first jobs, taking out a credit card, applying for student loans, or paying bills on their own. All of these are landmarks that now as an adult I can look back upon fondly, but the reality is that many of the financial first steps taken during those early college years are crucial in setting our financial path for years to come. Young adults without good financial guidance may overspend or default on these accounts, damaging their credit. But parents can have a say in avoiding such pitfalls by helping build their teen’s financial vocabulary early on.
Start by talking about basic money management, budgeting, paying bills on time, and saving. Also, teens should open and learn to contribute to a checking and savings account before they leave the nest. Not only can Delta Community help with great financial products, but the accessibility we provide via online and mobile banking lets students easily manage their finances whether they are home for Spring Break or cramming for a midterm while 500 miles away.
Article submitted by Kem
: June 19, 2012
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