Learning how to manage money is one of many new skills students learn when they leave home for college. "The more parents are involved in educating their children about personal finances during high school, the easier it will be when they're on their own," says a vice president with Fifth Third Bank.

Taking the first steps
Fifth Third Bank recommends teens obtain a checking account and debit card while still in high school, so they can become familiar with how they work. Fifth Third Bank also suggests they learn how to budget by keeping a list of all income and expenses for a month or two, and then reviewing that cash flow.

"It's important for college students to understand the difference between needs and wants," says the Fifth Third Bank Vice President. "Needs are things that are essential, such as tuition, rent, books, utilities and food. While food is essential, teens must realize that most meals should cost only a few dollars - not $30. Wants, or variable expenses, may be obtained only when extra money is left."

Fifth Third Bank also encourages parents and teens to discuss who will pay for what and whether a monthly allowance will be provided. Some families may split expenses with their children; others may offer incentives for getting good grades. In addition, many students may need to work part-time jobs.

Tools for managing money
Preloaded debit cards can help teens learn to budget. These cards are similar to gift cards in that they are worth a fixed amount, and deductions are made when the card is used. Fifth Third Bank encourages parents and teens to shop around for the best deal. "Some preloaded cards are linked to checking accounts and have no transaction fees - but others do."

Joint checking accounts give students and parents access to the same account. "I see joint checking accounts as a win-win situation. Students make better choices when they know their parents monitor the accounts online," says the Fifth Third Bank vice president. To learn more, see Fifth Third Student Checking.

"I also recommend parents help their teens establish a relationship with a banker. If they have questions or concerns, they'll have someone they can call for reliable advice."

For more information on helping teens manage money, contact Fifth Third at (866) 475-4201 or visit the Fifth Third website.