Some of the most important advice you can give your high school graduate is how to make good decisions when it comes to spending, saving and borrowing money.
If they master that in college, it should set them up for financial success in the future.
WalletHub's latest student money survey finds that 88% of college students are concerned about the economy. It also shows 80% are worried about inflation, and about half of students say their school is not doing enough to educate them about personal finance.
"You know, college is a great time to financially mature and establish some good habits for life," said Nora Yousif, senior vice president and financial advisor of the Empower Wealth Group at RBC Wealth Management.
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She says first, students need to learn how to create a budget and stick to it.
"There are great apps out there that help track your spending and make it a lot easier, like Mint and YNAB, which stands for 'You Need a Budget.' So that really helps you get a sense of what you're spending and how you're doing," she said.
Students can stretch their budgets by taking advantage of every student discount available, unlocking savings at retailers, restaurants, and sports and entertainment venues, even on Amazon Prime and travel. They are also advised to take advantage of any free perks offered by their school.
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Students should have a checking account and debit card in their name. But they may want to skip the account overdraft protection.
"I'm a fan of not having overdraft protection," said Yousif. "That way when the money is gone, it's gone, and it forces them to really live below their means."
Talk to your kids about what a credit score is, why it's important to have good one and how to get it.
"At some point during college, it's a very good idea to get a credit card," said Jill Gonzalez, an analyst with WalletHub. "You want to get great terms, which you can do as a student on a lot of these credit cards. And if you do have some type of credit history, hopefully good credit history, by the time you graduate, that means you're already off to a head start in terms of other types of financial products and getting good rates there. Even things like rent after college, landlords look at credit history now, as well."
While you still have some parental oversight, coach your college student on how to use that card responsibly.
"Of course, you want to make sure that they are paying them in full every month and they're not paying any unnecessary interest," said Yousif. "And a nice little key to remind them of is that they make sure they keep their utilization rate under 30% for a good credit score. In fact, if they keep that utilization rate under 10%, that'll help them get an excellent credit score."
You want to look for a student card with good perks and no annual fee.
WalletHub has listed its recommendations for students' first credit cards.
