Parents should educate children on money-saving says CFEB

While a lot of college students are considering of maintaining a students savings account, all the tricks and the delay on the rules on financial aid have cost a lot of college students a great deal of cash. But the good news is that the Free Application for Federal Student Aid is coming up with ways on how students can be qualified for bigger money.

It had been found out that almost half the student population filing for a FAFSA miss the deadline given by their state thus losing their chance of getting an extra grant. Another study showed that a thirty percent additional on the grants are given to student who filed with a professional compared to those who didn’t.

While there are grants given to students, a lot of parents are still very much worried about school expenses. Parents with children on their way to the University are more worried about school fees than ay other issues. About 250,000 parents have admitted that they are concerned on how or whether they should provide for their children when they have entered college. With an article published by Consumer Financial Education Body or CFEB, it had been focused that there is a huge need for students to manage their own finances instead of getting too dependent to their parents and that taking a savings account is a recommended thing to do. With another study done by CFEB it was also found out that thousands of students especially those in the university don’t know a lot about financial management.

One-third of the population subject to the study admitted that they don’t know that lenders on the doorsteps are far more expensive then the other and thirty-five percent of them also didn’t know that a car insurance should be under their names and not under their parents.

According to Lynne Condell, National Association of Student Money Advisers’ Chair said that majority of students spend most of their college life repaying their credits rather than setting aside some money in the bank. As a result of their lack of knowledge on ho finances should be handled, they end up with fair to very poor history and decision-making that involves money.

As Tony Hobman, CFEB chief Executive pointed out, it is both a challenge for parents and students to manage their finances when children first leave away from home and it is the parents’ obligation to remind their children the importance of having a savings account so for you to have spare tire when needed.