Over the past 40 years the costs of sending a child to college have increased 212%. Student loan debt, in response to these escalating costs, has ballooned to $1.56 trillion.
The average college graduate is saddled with $30,000 in student loan debt. The average monthly payment on that debt is approximately $400, which takes about 12 years to pay off.
But, that is only part of the story.
When you send your child off to college, their inner circle shifts from Mom, Dad, family and childhood friends, to fellow college students.
If your college student’s new inner circle has beliefs, thinking, ideologies and habits that are different from the ones they were raised in, they will become infected with them.
For too many college students, the “college experience” is much more than an education. Temptations are everywhere. Almost every weekend there is some party or fun activity going on.
Parties and fun activities cost money.
That’s not a problem, if those parties and activities are funded by part-time college jobs.
Unfortunately, that’s not the norm.
Many college students apply for credit cards to help them fund their social activities, without their parents being aware. Credit card companies no longer require parent approval on credit card applications.
That average college student carries $2,573 in credit card debt. This is not average spend, which is obviously significantly higher. This is the balance due on the credit card, after paying off some of that spend.
Since most people have Poor Money Habits, the odds are, your college student will be exposed to those habits.
If you raised your child to be frugal and responsible with money, you need to be very diligent and stay on top of their college spending, in order to prevent them from becoming infected by the bad habits of other college students who happen to infiltrate your college student’s inner circle.
College students who become infected with Poor Money Habits during college, spend years recovering from that infection.
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