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Letting Go: Sending Your Child Off to College with Peace of (Financial) Mind

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Sending kids off— or back to college— can be traumatic to parents for a number of reasons.  While many parents are concerned about their young ones’ ability to cope away from home, getting good grades or staying healthy, 64% of parents queried in a recent MasterCard Student Transition survey say they worry most about their child’s ability to manage money and spend wisely.  Some surveyed also fear that their children’s new found independence could lead to wasteful spending and added debt.

According to our survey of over 300 parents, nationwide, inadequate financial management is a common fear among parents of college-aged kids. In fact, two out of five parents actually think their child will spend all of their savings within one month of attending college.

The survey also found that…

  •  Parents expressed concern about their child’s ability to manage their future credit rating
    • Fifty-six percent of parents say they are somewhat or very concerned about their child messing up their credit rating
    • Parents rank their child messing up his or her credit rating as most concerning (28%) from a list that includes lending money to friends without getting paid back (20%), eating at restaurants every day (20%), sticking parents with a big bill to pay (17%) and taking trips without their parents’ knowledge (5%) 
  • Controls on money access and apps to track spending make parents feel more comfortable
    • Forty-three percent of parents believe that receiving text alerts when their child has made a purchase would make them feel more comfortable about their spending
    • Thirty-four percent said that they would be more comfortable if they had the ability to freeze spending on their child’s card
  • Debit and prepaid cards give parents greater peace of mind
    • Thirty-eight percent of parents prefer debit cards that they believe will help their children avoid debt, dwarfing cash (16 percent) and checkbooks (3 percent). Prepaid cards are the second preferred card (26 percent).

In summary, preparing your children before they leave for college and arming them with the right financial tools is essential to your peace of mind, and their wellbeing.

[poll id=”9″]

The post Letting Go: Sending Your Child Off to College with Peace of (Financial) Mind appeared first on Global Hub.


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