Sometimes it takes a little more for parents to help their kids with money habits. A little tough love can go a long way in developing the savings habits that will help your kids throughout their life.
Today’s essay is by Dereion Wright, a student at the University of Memphis. He shares how his mom helped him develop a savings strategy to help pay for college.
My overall tuition was around $2,000 and of course FASFA didn’t cover the entire cost. I had to take out a loan and I was introduced to something I wasn’t used to and that was debt!
My mom had some constructive criticism, but it did me some good, because I finally sat down and started my first bank account with $100 in it as a starting investment.
What she did was set up my direct deposit to her account and of course I didn’t like it at first, but every week she deposited $50 into my account.
She gave me the rest to spend for necessities only and if my funds ran dry a little early, she would increase the deposit into her account in order to stop me from spending extra, so we did have a pretty good system going!