The Importance of Planning
Summer of 2026 marks the beginning of watching my best friends send their kids off to college. Most of these kiddos don’t budget, some work, most don’t. As they prepare to leave, I am asked: “What is an appropriate monthly allowance? Should they get a part-time job?” For families of divorce this question becomes more complex and the nuances of college planning are not always black and white in the divorce decree.
Let’s look at the numbers: An allowance of $500/ month will run your household $4,500 annually on top of room/ board/ books/ tuition/ Greek life. I once met a girl named Judy. She was a first-generation college student from Florida who landed at a university in Arizona. Her parents had worked hard to give her opportunities they never had, and Judy was determined not to disappoint them. What Judy wasn't ready for was the financial reality of independence. By her first semester, she had mastered impulse spending: ordering Door Dash without checking her bank account, buying dresses without thinking about the price, eating off campus instead of using her dining dollars, etc. Her parents had never given her a budget or walked her through managing money on her own. The result? Judy found herself back in Florida by sophomore year. Not because she couldn't handle academics or the social scene, but because she couldn't manage her finances. Her parents had launched her with freedom, but without the practical skills to stay afloat.
Building Financial Literacy Throughout Your Child’s Life
The transition to college should not be the time to begin financial education: It is a culmination of the years of learning in your child’s life. Children who have been taught financial concepts progressively are far better equipped to manage the independence college demands. Early lessons about earning money through chores, part-time work, schoolwork build a foundation for understanding value and effort. As they grow, budgeting skills, understanding debt, and learning about savings become increasingly relevant. By the time your child reaches their teens and early adult years, introducing investment concepts and long-term financial planning helps them think critically about their financial future. This gradual progression makes financial literacy feel natural and significantly increases the likelihood of your child’s success as an independent adult.
Creating Your Support Network
Preparing for your child’s college years is not a journey you need to take alone. At the Hollub & Svejda Group (HSG) we implement important learning tools to help kids, parents and grandparents make money smart decisions. Ready to set yourself up for a easy college transition? Give the HSG a call.