CHARLOTTESVILLE, VA (CVILLE RIGHT NOW) – Most college freshmen around the country began their first semester away from home recently, and aside from the adjustment of settling into a new environment, the bigger concern is how to help them manage their money before they start calling mom and dad on a weekly basis asking for money. Meghan Crider, President, of Educational Programs, for Virginia National Bank said it’s important for parents to understand that the task of managing personal finances can be very intimidating to a college freshman without both parental support and oversight.

“I think it’s because money in college can just feel overwhelming,” Crider said on Virginia National Bank’s ‘My Forever Bank’ podcast. “You’ve got everything so new happening to you. But you don’t have to be perfect with your money to be successful. You just you need a plan, some awareness and just a few practical habits that help your money last longer while you’re in school. One reason why is because you usually don’t have money coming in on a regular basis while you’re in college.”

Most college freshman are not planning to work during their first year of college, and they’re hoping money from a summer job will last them throughout the year and Crider contends the only way to make that money last is not to use it, at all.

“The hard thing for your kids in school to do is just realize what they have to do is to make that money untouchable,” she said. “Let’s say that you’re in school for nine months. It has to last you for nine months. Right? So, you divide that money by nine and say, ‘I can’t touch anything over what 1/9 of that money is per month. Not thinking that, ‘Oh, I have that in the background. I can just borrow a little from, October to get me through September. No.”

Of course budgeting is the key, but Crider said most college students look at expenditures, and don’t spend enough time focusing on what their income streams are and how consistently that money is or is not coming in.

“The first thing is, before we think about where your money is gonna go, is to make a list of where your money’s coming from first,” she said. “First, what funds do you have? So, you have to look at and plot out and think about, okay, I have three months [of income], from working the vacation for school. Then you sit there and go, if you you’re getting some money, are you getting an allowance from your parents? And how is that coming to you? Right? If they say they’re gonna give you a lump sum at the beginning of the semester or next in the second semester, then you write that out. Here’s where the funds come from. If you’ve got student aid coming in, usually that comes at the beginning of the semester also, and it has to last you through the entire semester.

“So, sit down and look at where all that income comes from first,” Crider continued. “Some people have, like I did, work study programs. So plot out, write down when it’s coming in and how much it is for your income. Then start looking at where it has to go out for.  First and foremost, the biggest chunk that out of anybody’s [income], even a grown adult with kids and things like that,  is usually your rent or you know, your mortgage. So, you need to plot out every month, this is what [I need} to keep a roof over my head. Then you think about, well, what are the necessities you need? Okay, roof over your head first, and food. Food should be groceries. Not necessarily eating out.”

Crider went on to emphasize that having a practical conversation with children is so important, emphasizing that they are now responsible for all the things that they never thought about before and they need to prepare themselves.

“Most kids don’t look at groceries,” she said. “Then you gotta remember things like the toiletries, shampoo, deodorant, toothpaste, a toothbrush. Those are things that usually just show up at your house when you’re home. Well, because your mom got it. Because your parents do that for you. Yes. It’s always been there; [so you think] it always will be. Well, no, you have to consider the fact that you do that.”

Crider teaches high school students these types of concepts on a regular basis in the Virginia National Bank Finance, Career and leadership academy.  She believes that if you begin having these practical conversations about money while your child is still in high school, the transition to these basic money management concepts in college will go much more smoothly.