12/5/2005

Advice from Nashville's leading Financial Aid Advisor Dave Ramsey

 
Dave Says
By Dave Ramsey
Author of:
Financial Peace and
The Total Money Makeover

"Spending money for son at college"


Dear Dave,



My son is a freshman in college, and he’s coming home this weekend. I’m afraid we’re going to have the dreaded “I need more money” conversation. What do you suggest in terms of spending money for a student who is on a tough course of study? We’re willing to provide the spending money as long as he works hard and keeps his grades up. 

Bob



Dear Bob,



Why don’t you let him set his own poison? I’m not talking about a blank check, but ask him how much he needs and then make him prove it. A generic figure of $80 a day isn’t what we’re talking about. Ask him what he’s spending money on, and make him do a budget right there in front of you. Tell him that if he can justify it on paper – and that he’s not spending $200 a month on pizza - that you’ll give him that amount of money.

Later, if he comes back wanting a raise and it’s a little higher than you think it should be, you can tell him you’ll talk about it in a month. Tell him to save all his receipts and then you sit down with him and do a detailed cost analysis together. Based on this, if he can justify the raise, then he gets the raise. If he can’t, then the money stays in YOUR pocket.

You might try this, too, Bob. If he comes home about once a month, separate the money you give him into four different envelopes – one for each week of the month. Then, when he sees one getting low, he’ll know he needs to slow down the spending. If this doesn’t slow him down, then when he’s out of money he’s OUT OF MONEY! College should be a learning experience outside the classroom, too.

- Dave


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