“Shorb recommends that before a teen moves out, he or she should have responsibility for paying some of their expenses, be it clothing or “rent” to the parents.”
“Kids go from not paying any bills to all of a sudden having student loans and rent and eating out and groceries, so it’s all on them at once,” said Vince Shorb, CEO of the National Financial Educators Council. Shorb recommends that parents do all they can to help teens “build those financial muscles,” ideally by gradually increasing their responsibility for money decisions. Without that, he said, they will be susceptible to all sorts of money pitfalls.
Shorb said it is important for parents to step back and refrain from rescuing a student who makes poor financial choices. If a student does run out of money, Shorb said, parents can consider it a teaching moment. “Instead of sending money, send a grocery store gift certificate” or some other form of money that can only be used for the purpose parents intend, and make it a loan with interest. “We need to start associating some pain with some bad decisions,” he said.