Everyone is supposed to review your finances at least every six months or so but if you have a college student, you may want to encourage them to review a bit more often.
We talked to financial adviser Matt Carbray who says students should not only look at how much they’re spending but where that money is coming from.
Is it money from savings? Money they’re making now? Maybe from a student loan or maybe it’s your money, the parents?
If it’s a source that may dry up in semesters to come, they may want to reconsider how much they’re spending on things like dining out or entertainment. It’s no surprise if they’re spending more than expected as the expected price tag seems to go up each year.
“Just like how college tuition costs have gone up significantly over the last couple of year, so have the activities, transportation. Some students live off campus and with that come additional household expenses that you may not have on campus,” said Matt Carbray, Ridgeline Financial Partners.
Because it’s so unpredictable it’s why it’s important to keep it on your radar. Don’t get into a situation that’s hard to get out of.
Something else to take a look at is that meal plan! Did they buy into more than they’re actually eating? That may be a way to cut costs next semester.