Spending Money

Our daughter will be attending Indiana Wesleyan Kentucky next fall, and we wondered what you thought would be an appropriate amount of spending money for us to give her monthly?  parent

I’m often asked how much spending money college students need.  While that may seem like a simple question, the answer is different for each student and family.  Rest assured, however, whatever the dollar amount given to a student to survive at college – they will need at least that much!  I won’t give you a dollar amount, but I will suggest a way for each student and their family to find out for themselves.

Obviously, I’m assuming the family is providing some financial support to the student for college. This is both because I think it’s the norm AND because I think it’s the way it should be.  Remember, I also think students should be responsible for some portion of their college costs – even if the family can afford to pay for everything!

The difficulty here is the term “spending money”.  While you probably have a clear picture of what spending money is, everyone’s definition is different.  The point is, each family needs to sit down together and talk – to have an open and specific talk about money. Not a lecture, or a set of instructions for the student (although some will need that later), but a discussion.  Talk about all sources of funds, their amounts, and the timing of their availability.  Talk about all expenses, their timing and amounts, and then begin to categorize them.  Is the expense required, optional, a luxury, etc.?   All parties need to hear what the other thinks on this topic.

Families need to decide on a strategy with regard to making funds available.  Does the student need help managing funds and making decisions about money?  Is a lump sum at the beginning of each semester/year a more appropriate strategy, or is making regular, smaller “chunks” of money available a better plan?  What about some combination? Families also need to define whose responsibility each expense is.  Does the parent pay the cell phone bill since it’s a part of a family plan? Are the student’s additional text or data charges their responsibility?  Does the student pay the gasoline bill, or does the parent pay for their gas card charges?

If you decide a regular “doling out” of funds is the best way to go, come up with a dollar figure to start with, then 2 – 3 weeks into school, schedule a meeting to discuss how things are going and make adjustments.  Also discuss how to handle “emergencies”, and know whether or not there is ANY possibility of additional monies in the future.

Expect more expenses at the beginning of the semester (and at the beginning of college), and know that some expenses will precede the actual start of the semester.  Students will need to have more money available to start a semester than at any other time.  Tuition is due before or early in the semester, and schools may require two months room and board at the same time in August or January.

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