By Lynne Adkins
PHILADELPHIA (CBS) — As students head back to college, it’s a good idea to talk about money and budgeting to keep costs in control.
Ted Landis, a CPA in Colmar (Montgomery County), Pa., notes that incidentals can add up at college so it’s important for you and your student to know who is going to pay the bills and where that money is coming from,
He suggests talking about spending while making a list of possible expenditures, setting up a bank account, and keeping an eye on how fast the money is spent.
“You’ve got to learn how to budget, because it’s something you’re going to do the rest of your life,” he advises college freshmen. “You’ve got to learn to live within your means, you have to learn how to handle credit and credit cards, and you’ve got to pay bills.”
Landis says he’s seen some real irresponsible behavior among college students:
“You have so many kids who come out and think it’s not a big deal to let a couple of bills slide and pay things late — they don’t realize how that dings your credit score and how that can hurt you in the future.”
For parents, he advises, if your student is using a credit card, set the limit low to keep spending from getting out of control.