Are you sending off your child to college as a financial “innocent”?
This is one of the money archetypes I help clients identify, and it’s important to hold a lot of empathy and understanding toward this archetype because we all start out in life as innocents: curious, unaware, and trusting.
And while the innocent may appear easygoing and happy on the outside, they often experience a great deal of fear and anxiety internally because they feel unqualified to navigate the financial choices presented to them. Unfortunately, this mentality is one that people carry with them far into adulthood if left unaddressed.
Here’s where parenting comes in: more often than not, parents tend to take care of their child’s finances while they’re living under their roof – but then how do we expect them to cope and make smart financial decisions when they go out on their own?
College provides a wonderful opportunity to re-calibrate your child’s understanding of money and fill in any knowledge gaps to ensure that they have at least a baseline of financial literacy to pull from as they go out into the world. It’s a time to work with them on a reasonable budget to curb unnecessary spending, and help them to start saving if they’re going to be working while in school.
It’s very common for kids to get to college and over-spend given the vast opportunity for socializing, going out, and eating out – it’s a time characterized by new experiences, and it’s important to help them set financial boundaries for themselves so they (or you) don’t end up breaking the bank or in debt because of reckless spending habits.
Sometimes, establishing these boundaries can be challenging – 18 year-olds aren’t always thrilled to sit down and talk about budgets with mom or dad. If you’re in need of additional support in ensuring your child is financially prepared to leave the nest, you can take the money type quiz or schedule a consultation.
