Study Shows College Kids Hide Debt From Parents
North American Precis Syndicate
A third of college freshman incur unexpected debt—but there are ways to avoid it. (NAPS)
(NAPSI)—For college freshmen looking to manage their own finances—often
for the first time—heading to college can often mean a lot of
unexpected expenses and even new debt.
Surprising Survey Statistics
A recent survey of college students and parents uncovered some startling
information on school and their money.
• Almost half—44 percent of parents polled—said that
their child’s education was more expensive than they expected.
• Parents are confident—but kids still stumble. The majority
of parents, 63 percent of those polled, rated themselves confident or very
confident in their children’s ability to manage their finances in their
first year of school.
• Despite this, over a third of students polled said they incurred
unexpected debt in their first year of school.
• One statistic that may help explain the disparity between
confidence and stumbles: Almost one in three students said they hid the debt
they incurred from their parents.
• Credit cards and banking fees add up fast. Credit cards can be a
slippery slope for a newly minted adult. Forty percent of those who signed up
for credit cards during their first year of college say they regretted the
• Even navigating a bank account can be expensive. Nearly a third of
college freshmen incur banking fees in their first year of college. How much in fees? Thirty-seven percent said they incurred over
$300 in fees, and 1 in 10 incurred $1,000 or more.
So how can parents prepare their kids to avoid a financial freshman
fifteen? Here are five tips:
Five Tips to Avoid the Financial
1. Avoid the free t-shirt.
While college students are often wooed by credit card companies with the
allure of swag and perks, signing up for credit cards can be a slippery
slope. Cover the basics about credit with your student.
2. Be careful with recurring fees.
It can be tempting to get that free month of streaming music or premium TV
just for signing up. But forgetting to cancel can lead to unexpected charges
hitting your bank account on a monthly basis.
3. Plan for expenses. Managing
day-to-day expenses is just the beginning; preparing for, and setting aside
money for, big twice-yearly expenses such as books and class
fees is critical.
4. Take advantage of student perks.
Everything from flexible college meal plans to discounts on local stores, movie theaters and software are available to
college students who take the time to do their research.
5. Keep a budget and check it
regularly. Creating lifelong habits around financial management starts
now—parents might consider a money management tool from Quicken, maker
of the best-selling personal finance software in the U.S., as a great
graduation gift for high school seniors.
For further facts and tips, go to www.quicken.com.
“A third of college freshman incur unexpected
debt—but there are ways to avoid it. To help, parents might consider a
Quicken money management tool as a graduation gift for high school seniors. http://bit.ly/2m2VVzU”
On the Net:North American Precis Syndicate, Inc.(NAPSI)