We are in a world steeped in debt, both nationally and personally. With college students holding this much debt in addition to student loans, we are seeing a very disturbing trend that is going to greatly impact the country as a whole.

When these same students graduate from college, they will owe around $20,000 in student loan debt with another $4,000 in credit card debt. Then they will enter a stagnant economy with high unemployment rates and chances are they will have a tough time finding a good job.

Without a good job to start paying off these debts, newly graduated Americans are going to find themselves in a tough financial situation. Many of them move back home which changes the dynamics of the American family life. Parents have to once again support their children, even as they move into their golden years and consider retirement. 

During college, most students will have few ideas about what expenses they have to cover. If you’re paying for the entire tuition and room and board, you’ll need to pay for the entertainment, cable, and phone bill. Also, it is necessary to remember that it might be useful to order a cheap essay writing service in the UK when you have some difficulties with your college tasks; that will save your time and also save money. If your student receives a student loan, be sure to explain in advance what this means. If you’re paying for the entire education of your child, your student’s credit card bills will include interest.

So what can we do? How can we decrease debt in our country and help these students to be financially responsible? Here are five ways you can help your college-age student handle their finances.

Encourage Them to Work

Sure, it can be hard to hold down a job and get your homework done at the same time. At least, that’s what many college students will claim. These same students think nothing of going to a party the night before finals. Tell your children you expect them to shoulder some of the cost of college. Jobs teach responsibility and help these students not fall into credit card debt to fund their entertainment.

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Financial Responsibility 

When it comes to financial responsibility, many parents feel pressured to provide the best financial support possible for their children. While it is tempting to step in and help financially, it is not always a good idea. While this can be a rewarding experience, it also teaches kids life lessons that they’ll need for the rest of their lives. Cutting the financial cord at an early age is important. It can be done in phases or suddenly, depending on the age and the maturity of your child.

Students need to understand the concept of delayed gratification and save money for important purchases. That way, they won’t have to worry about money shortages or unexpected expenses. In addition, saving money for future purchases will ensure that they don’t become burdened by debt when they’re older. Credit cards, while useful in emergencies, can also lead to problems for students and parents. Instead, students should learn to save and avoid storing up credit card balances.

It’s also important to teach students to save money for a rainy day. It is a good idea to set up a savings account for emergency costs, as this will prevent them from feeling panicked about a large bill. Having a savings account can also help students avoid anxiety over unforeseen expenses. Likewise, a credit card can be helpful in an emergency but can create problems for both parents and students alike.

Teach Your Children about Credit Cards

Give students the facts. Paying only the minimum amount due on a card with a balance of $4,000 and an APR of 12% will take 109 months. Ask your child if those little luxuries are worth nine years of being in debt. Ensure they have applied for scholarships and grants. And if they need urgent college application essay help, you can consider requesting professional assistance from essay writers. Encourage your child to apply for as many of these as possible to help with tuition costs.

Encourage Them to Live within Their Means

While a credit card can be handy in an emergency every person must learn to live within their means. This means no $500 shopping sprees, even if it’s for Christmas. 

Help Them when Needed, but don’t Give Them Too Much

One of the biggest problems with children moving back in with their parents is that parents tend to still take care of them as if they were in middle school. If a grown child moves back in with their parents, they need to have financial responsibilities. You don’t have to let your child starve, but you do need to instill in them that they are old enough to earn their keep.


A shaky economy and ever-rising unemployment rates mean that we are in a financially risky time. If you can help your children become financially responsible now, the lessons they learn will serve them well for the remainder of their lives.

Financial responsibility for students means knowing what the rules are for your student loans and the consequences if you fail to meet those obligations. It’s also crucial for you to know your financial responsibilities. For example, if you’re a student who is receiving funding from a sponsor, he or she must sign an agreement that sets out what he or she can and cannot do. It’s essential to understand all of these rules and regulations before signing a loan.